[Congressional Record Volume 151, Number 23 (Thursday, March 3, 2005)]
[Senate]
[Pages S2005-S2044]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Ms. COLLINS (for herself, Ms. Landrieu, Mrs. Dole, Ms. 
        Mikulski, Mrs. Hutchison, Mrs. Boxer, Ms. Snowe, Ms. Cantwell, 
        Ms. Murkowski, Mrs. Clinton, Mrs. Feinstein, Mrs. Lincoln, Mrs. 
        Murray, Ms. Stabenow, Mr. Voinovich, Mr. Akaka, Mr. Bennett, 
        Mr. Durbin, Mr. Lautenberg, Mr. Sarbanes, and Mr. Pryor):
  S. 501. A bill to provide a site for the National Women's History 
Museum in the District of Columbia; to the Committee on Homeland 
Security and Governmental Affairs.
  Ms. COLLINS. Mr. President, today I am introducing the National 
Women's History Museum Act of 2005. I appreciate the support of my 
colleagues who have helped in this important effort and who have agreed 
to be cosponsors, including Senators Landrieu, Dole, Mikulski, 
Hutchison, Boxer, Snowe, Cantwell, Murkowski, Clinton, Feinstein, 
Lincoln, Murray, Stabenow, Voinovich, Akaka, Bennett, Durbin, 
Lautenberg, Sarbanes, and Pryor. I introduced this bill last Congress, 
and it passed the Senate unanimously.
  The need to establish a museum recognizing the contributions of 
American women is clear. There is currently no national institution in 
the Washington, D.C. area that is dedicated to the legacy of women's 
contributions throughout our country's history. Sadly, fewer than 5 
percent of the Nation's 2,200 National Historic Landmarks are dedicated 
to women, a troubling fact given the significant contributions of women 
throughout our Nation's history.
  The proposed legislation would direct the General Services 
Administration (GSA) to negotiate and enter into an occupancy agreement 
with the National Women's History Museum, Inc. (NWHM) to establish a 
museum in the currently vacant Pavilion Annex of the Old Post Office 
building in Washington, D.C. The NWHM is a nonprofit, nonpartisan, 
educational institution in the District of Columbia that was created to 
research and present the historic contributions that women have made to 
all aspects of human endeavor and to present the contributions that 
women have made to the Nation in their various roles in family, the 
economy, and society. In 1999, the President's Commission on the 
celebrating of Women in American History concluded that ``efforts to 
implement an appropriate celebration of women's history in the next 
millennium should include,the designation of a focal point for women's 
history in our Nation's capital,'' citing the efforts of the NWHM to 
implement this goal.
  The proposed legislation would serve two important purposes: 
Creating, as the President's Commission recommended, a national women's 
museum in the District of Columbia and, by designating the Pavilion 
Annex, utilizing a currently vacant space on Pennsylvania Avenue, 
considered ``America's Main Street.''
  I would note that, last Congress the Government Accountability Office

[[Page S2006]]

(GAO) placed real property on its High Risk list noting that vacant and 
underutilized properties present significant potential risks to Federal 
agencies including lost dollars because of the need for maintenance and 
lost opportunities because the property could be put to more beneficial 
uses. The Annex has been vacant for more than 10 years and it is 
unclear whether, if at all, GSA will be able to generate a use for the 
building. While the adjacent Old Post Office is a national historic 
landmark, the Annex is not and has sat vacant and deteriorating for 
years, while Federal dollars are used to keep it maintained and 
secured.

  In addition, the proposed legislation would generate revenue from 
this now vacant property for the Federal Government through rental 
payments, based on the fair market value. The museum would also benefit 
the city by drawing an estimated 1.5 million visitors annually to the 
District and promoting economic activities by attracting tourists.
  I believe this legislation is clearly a win-win situation.
  There is strong precedent for this type of legislation. In fact, 
museums in the District of Columbia are historically established by 
Congress through legislation that authorizes the use of Federal land or 
buildings. One recent legislative example is the National Museum for 
African American History and Culture, which identified potential sites 
for such a Museum. Another example is the National Law Enforcement 
Museum Act, which authorized the National Law Enforcement Officers' 
Memorial Fund, Inc. to build a Museum on Federal land. The current 
Building Museum located in the historic Pension Building was authorized 
by an act of Congress.
  I believe that just as these museums serve very important public 
purposes of educating visitors about important aspects of our history 
and culture, so also would a national women's history museum fill a 
void in telling the story of women in our history.
  The most compelling reasons to support this important piece of 
legislation are the stories of the women in American history, who 
helped change and shape our Nation: Women who were and are trailblazers 
such as Sandra Day O'Connor, who was the first woman to serve on the 
Supreme Court; Sally Ride, who was the first American woman in space; 
and Madeleine Albright, who was the first woman U.S. Secretary of 
State. We should ensure that the stories of women with unwavering 
bravery are told. Women like Harriet Tubman, who led slaves to freedom 
using the underground railroad, and Rosa Parks, who sparked a movement 
just by refusing to sit in the back of a bus. A national museum would 
record this history and tells the stories of these pioneering women, so 
that others might be inspired by them.
  One woman who inspired me and who is my own role model is the woman 
who served in the Senate seat that I now hold, Maine's own Margaret 
Chase Smith, who was the first woman nominated for president of the 
United States by a major political party and the first woman to serve 
in both houses of Congress. Senator Smith began representing Maine in 
1940. She was a woman who embodied the independent spirit of Maine. She 
was from Skowhegan and was known as a smart, courageous, and 
independent Member of Congress. Long after it became commonplace for 
women to serve in the highest ranks of our government, Senator Smith 
will be remembered in Maine and the Nation for her courage and service.
  These women, and many like them, are the reason I am proud to sponsor 
a bill directing that the Old Post Office Annex be made available to 
house the National Women's History Museum. Women's history needs a 
place in our Capital and in our collective American history, so that we 
all cannot only learn about our past, but also be inspired to make 
history of our own.
  I urge that my colleagues support this important piece of 
legislation.
                                 ______
                                 
      By Mr. COLEMAN (for himself, Mr. Pryor, Mr. DeWine, and Mr. 
        Graham):
  S. 502. A bill to revitalize rural America and rebuild main street, 
and for other purposes; to the Committee on Finance.
  Mr. COLEMAN. Mr. President, traveling throughout rural Minnesota, I 
see a very real need for the revitalization and rebuilding of Main 
Streets, and this is why today I am introducing the Rural Renaissance 
Act with my good friends Senator Pryor of Arkansas, Senator Graham of 
South Carolina, and Senator DeWine of Ohio. This legislation 
acknowledges that rural America needs significant infrastructure 
investment if it is to join with the rest of the Nation in an economic 
recovery, and our bill proposes to apply $50 billion toward this end.
  Many Minnesota cities and towns need help with updating or expanding 
their drinking water supply systems or their wastewater treatment 
systems. The West Central Initiative and the USDA both estimate that 
there is a $1.5 billion gap between available local, State, and Federal 
resources and the amount needed by Minnesota communities. There are 
similar needs in communities throughout the rest of the Nation. 
Decaying physical infrastructure needs to be addressed because it 
impacts more than just health and quality of life. It also impacts the 
ability of a city or town to build housing, provide services, ensure 
access to information, and grow jobs. Throughout rural America, 
progress is being made in many areas, but in others, a lack of funding 
is impacting the ability of communities to address very critical albeit 
basic needs. Here is an example of the physical infrastructure 
challenges facing rural America: The Environmental Protection Agency 
estimates that communities will need an estimated $300 billion to $1 
trillion over the next 20 years to repair, replace, or upgrade drinking 
water and wastewater facilities, accommodate a growing population, and 
meet water quality standards.
  Current residents and businesses of rural communities face a 
challenge when it comes to accessing the Internet. This reality means 
that these cities and towns are set back when it comes to attracting 
new residents and businesses. While the number of broadband subscribers 
has risen dramatically in recent years, studies conducted by the FCC, 
DOC, and USDA all suggest that urban and high-income areas are far 
outpacing deployment in rural and low-income areas. As a result of 
these disparities, rural America suffers adverse economic and social 
consequences. The USDA has reported that in 2000, less than five 
percent of towns with populations of 10,000 or less had access to 
broadband. Likewise, the Commerce Department has found that 21.2 
percent of Internet users in urban areas have access to high-speed 
connections, while only 12.2 percent of Internet users in rural areas 
have this technology.
  Housing is essential if communities want to keep the businesses they 
have or attract new ones. Employers need to know that employees will be 
able to find housing that they can afford in or near the community. 
Housing efforts must emphasize new construction and rehabilitation 
alike. Communities need new units to attract new families and they must 
have the ability to help residents remodel and renovate existing 
housing. Housing in rural America is clearly an economic development 
issue. It is clear that these physical infrastructure needs have 
substantial financial implications for rural America. Some 1.8 million 
homes and apartments are moderately or severely substandard. Our Rural 
Renaissance Act addresses these needs. The impact of doing nothing 
poses great risks for the future of rural cities and towns.
  As you can see, the need for a rural renaissance is clear. Greater 
Minnesota alone needs almost $7 billion over the next 20 years to 
modernize infrastructure, accommodate the increasing population, and 
meet current water quality standards. The cost of bringing high speed 
Internet access to the rest of rural America is estimated at about 
$10.9 billion. These are just a couple of examples but the most vivid, 
I think, are just the closed stores you see up and down our Main 
Streets. We'd like to turn these towns around like we did in St. Paul, 
and we can.
  Our Rural Renaissance Act will fund these infrastructure 
improvements--and also provide for community facilities and farmer-
owned and value-added projects--by sending $50 billion out to rural 
America in one to three years at a cost of about $15 billion over 10 
years. It can be done through Federal bonds,

[[Page S2007]]

just as we helped pay for the costs of World War II and as State and 
locals pay for many infrastructure developments. The key, however, is 
that these monies will be made available to States and locals, as well 
as farmer-owned coops and other eligible entities, in the form of 
grants and low interest loans.
  We have seen tremendous support from groups back home and across the 
country who share a commitment to revitalizing rural America and 
rebuilding our Main Streets. Those supporting this bill include, the 
Association of Minnesota Counties, the League of Minnesota Cities, the 
Minnesota Rural Water Association, the Independent Community Bankers of 
Minnesota, the Minnesota Rural Electric Association, the University of 
Minnesota, the Rural Broadband Coalition, the National Council of 
Farmer Cooperatives, the Telecommunications Industry Association, the 
American Sugarbeet Growers Association, Land O' Lakes, the Minnesota 
Corn Growers Association, the AgCountry Farm Credit Services, the 
AgStar Financial Services, the Farm Credit Services of Grand Forks, the 
Farm Credit Services of Minnesota Valley, AgriBank, the Minnesota 
Association of Wheat Growers, the Minnesota Association of 
Cooperatives, the Wisconsin Federation of Cooperatives, the Minnesota 
Barley Growers Association, the Minnesota Soybean Growers Association, 
the Minnesota Nursery and Landscape Association, the America Soybean 
Association, the Minnesota Association of Townships, the Minnesota 
Chapter of the National Association of Housing and Redevelopment 
Officials, and the Red River Valley Sugarbeet Growers Association.
  These groups and many others agree with us when we say that we need 
the Rural Renaissance Act. And we look forward to working with them on 
this legislation. Together, we can create economic opportunity in rural 
America and grow jobs.
  I ask unanimous consent that the text of the Rural Renaissance Act be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 502

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Rural Renaissance Act''.

     SEC. 2. RURAL RENAISSANCE CORPORATION.

       Subtitle D of the Consolidated Farm and Rural Development 
     Act (7 U.S.C. 1981 et seq.) is amended by adding at the end 
     the following new section:

     ``SEC. 379E. RURAL RENAISSANCE CORPORATION.

       ``(a) Establishment and Status.--There is established a 
     body corporate to be known as the `Rural Renaissance 
     Corporation' (hereafter in this section referred to as the 
     `Corporation'). The Corporation is not a department, agency, 
     or instrumentality of the United States Government, and shall 
     not be subject to title 31, United States Code.
       ``(b) Principal Office; Application of Laws.--The principal 
     office and place of business of the Corporation shall be in 
     the District of Columbia, and, to the extent consistent with 
     this section, the District of Columbia Business Corporation 
     Act (D.C. Code 29-301 et seq.) shall apply.
       ``(c) Functions of Corporation.--The Corporation shall--
       ``(1) issue rural renaissance bonds for the financing of 
     qualified projects as required under section 54 of the 
     Internal Revenue Code of 1986,
       ``(2) establish an allocation plan as required under 
     section 54(f)(2)(A) of such Code,
       ``(3) establish and operate the Rural Renaissance Trust 
     Account as required under section 54(i) of such Code,
       ``(4) perform any other function the sole purpose of which 
     is to carry out the financing of qualified projects through 
     rural renaissance bonds, and
       ``(5) not later than February 15 of each year submit a 
     report to Congress--
       ``(A) describing the activities of the Corporation for the 
     preceding year, and
       ``(B) specifying whether the amounts deposited and expected 
     to be deposited in the Rural Renaissance Trust Account are 
     sufficient to fully repay at maturity the principal of any 
     outstanding rural renaissance bonds issued pursuant to such 
     section 54.
       ``(d) Powers of Corporation.--The Corporation--
       ``(1) may sue and be sued, complain and defend, in its 
     corporate name, in any court of competent jurisdiction,
       ``(2) may adopt, alter, and use a seal, which shall be 
     judicially noticed,
       ``(3) may prescribe, amend, and repeal such rules and 
     regulations as may be necessary for carrying out the 
     functions of the Corporation,
       ``(4) may make and perform such contracts and other 
     agreements with any individual, corporation, or other private 
     or public entity however designated and wherever situated, as 
     may be necessary for carrying out the functions of the 
     Corporation,
       ``(5) may determine and prescribe the manner in which its 
     obligations shall be incurred and its expenses allowed and 
     paid,
       ``(6) may, as necessary for carrying out the functions of 
     the Corporation, employ and fix the compensation of employees 
     and officers,
       ``(7) may lease, purchase, or otherwise acquire, own, hold, 
     improve, use, or otherwise deal in and with such property 
     (real, personal, or mixed) or any interest therein, wherever 
     situated, as may be necessary for carrying out the functions 
     of the Corporation,
       ``(8) may accept gifts or donations of services or of 
     property (real, personal, or mixed), tangible or intangible, 
     in furtherance of the purposes of this section, and
       ``(9) shall have such other powers as may be necessary and 
     incident to carrying out this section.
       ``(e) Nonprofit Entity; Restriction on Use of Moneys; 
     Conflict of Interests; Independent Audits.--
       ``(1) Nonprofit entity.--The Corporation shall be a 
     nonprofit corporation and shall have no capital stock.
       ``(2) Restriction.--No part of the Corporation's revenue, 
     earnings, or other income or property shall inure to the 
     benefit of any of its directors, officers, or employees, and 
     such revenue, earnings, or other income or property shall 
     only be used for carrying out the purposes of this section.
       ``(3) Conflict of interests.--No director, officer, or 
     employee of the Corporation shall in any manner, directly or 
     indirectly participate in the deliberation upon or the 
     determination of any question affecting his or her personal 
     interests or the interests of any corporation, partnership, 
     or organization in which he or she is directly or indirectly 
     interested.
       ``(4) Independent audits.--An independent certified public 
     accountant shall audit the financial statements of the 
     Corporation each year. The audit shall be carried out at the 
     place at which the financial statements normally are kept and 
     under generally accepted auditing standards. A report of the 
     audit shall be available to the public and shall be included 
     in the report required under subsection (c)(5).
       ``(f) Tax Exemption.--The Corporation, including its 
     franchise and income, is exempt from taxation imposed by the 
     United States, by any territory or possession of the United 
     States, or by any State, county, municipality, or local 
     taxing authority.
       ``(g) Management of Corporation.--
       ``(1) Board of directors; membership; designation of 
     chairperson and vice chairperson; appointment considerations; 
     term; vacancies.--
       ``(A) Board of directors.--The management of the 
     Corporation shall be vested in a board of directors composed 
     of 7 members appointed by the President, by and with the 
     advice and consent of the Senate.
       ``(B) Chairperson and vice chairperson.--The President 
     shall designate 1 member of the Board to serve as Chairperson 
     of the Board and 1 member to serve as Vice Chairperson of the 
     Board.
       ``(C) Individuals from private life.--Five members of the 
     Board shall be appointed from private life.
       ``(D) Federal officers and employees.--Two members of the 
     Board shall be appointed from among officers and employees of 
     agencies of the United States concerned with rural 
     development.
       ``(E) Appointment considerations.--All members of the Board 
     shall be appointed on the basis of their understanding of and 
     sensitivity to rural development processes. Members of the 
     Board shall be appointed so that not more than 4 members of 
     the Board are members of any 1 political party.
       ``(F) Terms.--Members of the Board shall be appointed for 
     terms of 3 years, except that of the members first appointed, 
     as designated by the President at the time of their 
     appointment, 2 shall be appointed for terms of 1 year and 2 
     shall be appointed for terms of 2 years.
       ``(G) Vacancies.--A member of the Board appointed to fill a 
     vacancy occurring before the expiration of the term for which 
     that member's predecessor was appointed shall be appointed 
     only for the remainder of that term. Upon the expiration of a 
     member's term, the member shall continue to serve until a 
     successor is appointed and is qualified.
       ``(2) Compensation, actual, necessary, and transportation 
     expenses.--Members of the Board shall serve without 
     additional compensation, but may be reimbursed for actual and 
     necessary expenses not exceeding $100 per day, and for 
     transportation expenses, while engaged in their duties on 
     behalf of the Corporation.
       ``(3) Quorum.--A majority of the Board shall constitute a 
     quorum.
       ``(4) President of corporation.--The Board of Directors 
     shall appoint a president of the Corporation on such terms as 
     the Board may determine.''.

     SEC. 3. CREDIT TO HOLDERS OF RURAL RENAISSANCE BONDS.

       (a) In General.--Part IV of subchapter A of chapter 1 of 
     the Internal Revenue Code of 1986 (relating to credits 
     against tax) is amended by adding at the end the following 
     new subpart:

[[Page S2008]]

  ``Subpart H--Nonrefundable Credit for Holders of Rural Renaissance 
                                 Bonds

``Sec. 54. Credit to holders of rural renaissance bonds.

     ``SEC. 54. CREDIT TO HOLDERS OF RURAL RENAISSANCE BONDS.

       ``(a) Allowance of Credit.--In the case of a taxpayer who 
     holds a rural renaissance bond on a credit allowance date of 
     such bond which occurs during the taxable year, there shall 
     be allowed as a credit against the tax imposed by this 
     chapter for such taxable year an amount equal to the sum of 
     the credits determined under subsection (b) with respect to 
     credit allowance dates during such year on which the taxpayer 
     holds such bond.
       ``(b) Amount of Credit.--
       ``(1) In general.--The amount of the credit determined 
     under this subsection with respect to any credit allowance 
     date for a rural renaissance bond is 25 percent of the annual 
     credit determined with respect to such bond.
       ``(2) Annual credit.--The annual credit determined with 
     respect to any rural renaissance bond is the product of--
       ``(A) the applicable credit rate, multiplied by
       ``(B) the outstanding face amount of the bond.
       ``(3) Applicable credit rate.--For purposes of paragraph 
     (2), the applicable credit rate with respect to an issue is 
     the rate equal to an average market yield (as of the day 
     before the date of sale of the issue) on outstanding long-
     term corporate debt obligations (determined in such manner as 
     the Secretary prescribes).
       ``(4) Credit allowance date.--For purposes of this section, 
     the term `credit allowance date' means--
       ``(A) March 15,
       ``(B) June 15,
       ``(C) September 15, and
       ``(D) December 15.

     Such term includes the last day on which the bond is 
     outstanding.
       ``(5) Special rule for issuance and redemption.--In the 
     case of a bond which is issued during the 3-month period 
     ending on a credit allowance date, the amount of the credit 
     determined under this subsection with respect to such credit 
     allowance date shall be a ratable portion of the credit 
     otherwise determined based on the portion of the 3-month 
     period during which the bond is outstanding. A similar rule 
     shall apply when the bond is redeemed.
       ``(c) Limitation Based on Amount of Tax.--
       ``(1) In general.--The credit allowed under subsection (a) 
     for any taxable year shall not exceed the excess of--
       ``(A) the sum of the regular tax liability (as defined in 
     section 26(b)) plus the tax imposed by section 55, over
       ``(B) the sum of the credits allowable under this part 
     (other than this subpart and subpart C).
       ``(2) Carryover of unused credit.--If the credit allowable 
     under subsection (a) exceeds the limitation imposed by 
     paragraph (1) for such taxable year, such excess shall be 
     carried to the succeeding taxable year and added to the 
     credit allowable under subsection (a) for such taxable year.
       ``(d) Credit Included in Gross Income.--Gross income 
     includes the amount of the credit allowed to the taxpayer 
     under this section (determined without regard to subsection 
     (c)) and the amount so included shall be treated as interest 
     income.
       ``(e) Rural Renaissance Bond.--For purposes of this part, 
     the term `rural renaissance bond' means any bond issued as 
     part of an issue if--
       ``(1) 95 percent or more of the proceeds from the sale of 
     such issue are to be used--
       ``(A) for expenditures incurred after the date of the 
     enactment of this section for any qualified project, or
       ``(B) for deposit in the Rural Renaissance Trust Account 
     for repayment of rural renaissance bonds at maturity,
       ``(2) the bond is issued by the Rural Renaissance 
     Corporation, is in registered form, and meets the rural 
     renaissance bond limitation requirements under subsection 
     (f),
       ``(3) except for bonds issued in accordance with subsection 
     (f)(4), the term of each bond which is part of such issue 
     does not exceed 30 years,
       ``(4) the payment of principal with respect to such bond is 
     the obligation of the Rural Renaissance Corporation, and
       ``(5) the issue meets the requirements of subsection (g) 
     (relating to arbitrage).
       ``(f) Limitation on Amount of Bonds Designated.--
       ``(1) National limitation.--There is a rural renaissance 
     bond limitation for each calendar year. Such limitation is--
       ``(A) for 2006--
       ``(i) with respect to bonds described in subsection 
     (e)(1)(A), $50,000,000,000, plus
       ``(ii) with respect to bonds described in subsection 
     (e)(1)(B), such amount (not to exceed $15,000,000,000) as 
     determined necessary by the Rural Renaissance Corporation to 
     provide funds in the Rural Renaissance Trust Account for the 
     repayment of rural renaissance bonds at maturity, and
       ``(B) except as provided in paragraph (3), zero thereafter.
       ``(2) Limitation allocated to qualified projects among 
     states.--
       ``(A) In general.--Subject to subparagraph (B), the 
     limitation applicable under paragraph (1)(A)(i) for any 
     calendar year shall be allocated by the Rural Renaissance 
     Corporation for qualified projects among the States under an 
     allocation plan established by the Corporation and submitted 
     to Congress for consideration.
       ``(B) Minimum allocations to states.--In establishing the 
     allocation plan under subparagraph (A), the Rural Renaissance 
     Corporation shall ensure that the aggregate amount allocated 
     for qualified projects located in each State under such plan 
     is not less than $500,000,000.
       ``(3) Carryover of unused limitation.--If for any calendar 
     year--
       ``(A) the rural renaissance bond limitation amount, exceeds
       ``(B) the amount of bonds issued during such year by the 
     Rural Renaissance Corporation, the rural renaissance bond 
     limitation amount for the following calendar year shall be 
     increased by the amount of such excess. Any carryforward of a 
     rural renaissance bond limitation amount may be carried only 
     to calendar year 2007 or 2008.
       ``(4) Issuance of small denomination bonds.--From the rural 
     renaissance bond limitation for each year, the Rural 
     Renaissance Corporation shall issue a limited quantity of 
     rural renaissance bonds in small denominations suitable for 
     purchase as gifts by individual investors wishing to show 
     their support for investing in rural America.
       ``(g) Special Rules Relating to Arbitrage.--
       ``(1) In general.--Subject to paragraph (2), an issue shall 
     be treated as meeting the requirements of this subsection if 
     as of the date of issuance, the Rural Renaissance Corporation 
     reasonably expects--
       ``(A) to spend at least 95 percent of the proceeds from the 
     sale of the issue for 1 or more qualified projects within the 
     3-year period beginning on such date,
       ``(B) to incur a binding commitment with a third party to 
     spend at least 10 percent of the proceeds from the sale of 
     the issue, or to commence construction, with respect to such 
     projects within the 6-month period beginning on such date, 
     and
       ``(C) to proceed with due diligence to complete such 
     projects and to spend the proceeds from the sale of the 
     issue.
       ``(2) Rules regarding continuing compliance after 3-year 
     determination.--If at least 95 percent of the proceeds from 
     the sale of the issue is not expended for 1 or more qualified 
     projects within the 3-year period beginning on the date of 
     issuance, but the requirements of paragraph (1) are otherwise 
     met, an issue shall be treated as continuing to meet the 
     requirements of this subsection if either--
       ``(A) the Rural Renaissance Corporation uses all unspent 
     proceeds from the sale of the issue to redeem bonds of the 
     issue within 90 days after the end of such 3-year period, or
       ``(B) the following requirements are met:
       ``(i) The Rural Renaissance Corporation spends at least 75 
     percent of the proceeds from the sale of the issue for 1 or 
     more qualified projects within the 3-year period beginning on 
     the date of issuance.
       ``(ii) The Rural Renaissance Corporation spends at least 95 
     percent of the proceeds from the sale of the issue for 1 or 
     more qualified projects within the 4-year period beginning on 
     the date of issuance, and uses all unspent proceeds from the 
     sale of the issue to redeem bonds of the issue within 90 days 
     after the end of the 4-year period beginning on the date of 
     issuance.
       ``(h) Recapture of Portion of Credit Where Cessation of 
     Compliance.--
       ``(1) In general.--If any bond which when issued purported 
     to be a rural renaissance bond ceases to be such a qualified 
     bond, the Rural Renaissance Corporation shall pay to the 
     United States (at the time required by the Secretary) an 
     amount equal to the sum of--
       ``(A) the aggregate of the credits allowable under this 
     section with respect to such bond (determined without regard 
     to subsection (c)) for taxable years ending during the 
     calendar year in which such cessation occurs and the 2 
     preceding calendar years, and
       ``(B) interest at the underpayment rate under section 6621 
     on the amount determined under subparagraph (A) for each 
     calendar year for the period beginning on the first day of 
     such calendar year.
       ``(2) Failure to pay.--If the Rural Renaissance Corporation 
     fails to timely pay the amount required by paragraph (1) with 
     respect to such bond, the tax imposed by this chapter on each 
     holder of any such bond which is part of such issue shall be 
     increased (for the taxable year of the holder in which such 
     cessation occurs) by the aggregate decrease in the credits 
     allowed under this section to such holder for taxable years 
     beginning in such 3 calendar years which would have resulted 
     solely from denying any credit under this section with 
     respect to such issue for such taxable years.
       ``(3) Special rules.--
       ``(A) Tax benefit rule.--The tax for the taxable year shall 
     be increased under paragraph (2) only with respect to credits 
     allowed by reason of this section which were used to reduce 
     tax liability. In the case of credits not so used to reduce 
     tax liability, the carryforwards and carrybacks under section 
     39 shall be appropriately adjusted.
       ``(B) No credits against tax.--Any increase in tax under 
     paragraph (2) shall not be treated as a tax imposed by this 
     chapter for purposes of determining--
       ``(i) the amount of any credit allowable under this part, 
     or
       ``(ii) the amount of the tax imposed by section 55.
       ``(i) Rural Renaissance Trust Account.--
       ``(1) In general.--The following amounts shall be held in a 
     Rural Renaissance Trust

[[Page S2009]]

     Account by the Rural Renaissance Corporation:
       ``(A) The proceeds from the sale of all bonds issued under 
     this section.
       ``(B) The amount of any matching contributions with respect 
     to such bonds.
       ``(C) The investment earnings on proceeds from the sale of 
     such bonds.
       ``(D) Any earnings on any amounts described in subparagraph 
     (A), (B), or (C).
       ``(2) Use of funds.--Amounts in the Rural Renaissance Trust 
     Account may be used only to pay costs of qualified projects, 
     redeem rural renaissance bonds, and fund the operations of 
     the Rural Renaissance Corporation, except that amounts 
     withdrawn from the Rural Renaissance Trust Account to pay 
     costs of qualified projects may not exceed the aggregate 
     proceeds from the sale of rural renaissance bonds described 
     in subsection (e)(1)(A).
       ``(3) Use of remaining funds in rural renaissance trust 
     account.--Upon the redemption of all rural renaissance bonds 
     issued under this section, any remaining amounts in the Rural 
     Renaissance Trust Account shall be available to the Rural 
     Renaissance Corporation for any qualified project.
       ``(j) Qualified Project.--For purposes of this section--
       ``(1) In general.--Subject to paragraph (3), the term 
     `qualified project' means a project which--
       ``(A) includes 1 or more of the projects described in 
     paragraph (2),
       ``(B) is located in a rural area, and
       ``(C) is proposed by a State and approved by the Rural 
     Renaissance Corporation.
       ``(2) Projects described.--A project described in this 
     paragraph is--
       ``(A) a water or waste treatment project,
       ``(B) a conservation project, including any project to 
     protect water quality or air quality (including odor 
     abatement), any project to prevent soil erosion, and any 
     project to protect wildlife habitat, including any project to 
     assist agricultural producers in complying with Federal, 
     State, or local regulations,
       ``(C) an affordable housing project,
       ``(D) a community facility project, including hospitals, 
     fire and police stations, and nursing and assisted-living 
     facilities,
       ``(E) a value-added agriculture or renewable energy 
     facility project for agricultural producers or farmer-owned 
     entities, including any project to promote the production or 
     processing of ethanol, biodiesel, animal waste, biomass, raw 
     commodities, or wind as a fuel,
       ``(F) a rural venture capital project for, among others, 
     farmer-owned entities,
       ``(G) a distance learning or telemedicine project,
       ``(H) a project to expand broadband technology, and
       ``(I) a rural teleworks project.
       ``(3) Special rules.--For purposes of this subsection--
       ``(A) any project described in subparagraph (E) or (F) of 
     paragraph (2) for a farmer-owned entity may be considered a 
     qualified project if such entity is located in a rural area, 
     or in the case of a farmer-owned entity the headquarters of 
     which are located in a nonrural area, if the project is 
     located in a rural area, and
       ``(B) any project for a farmer-owned entity which is a 
     facility described in paragraph (2)(E) for agricultural 
     producers may be considered a qualified project regardless of 
     whether the facility is located in a rural or nonrural area.
       ``(4) Approval guidelines and criteria.--
       ``(A) In general.--Not later than 60 days after the date of 
     the enactment of this section, the Rural Renaissance 
     Corporation shall consult with the appropriate committees of 
     Congress regarding the development of guidelines and criteria 
     for the approval by the Corporation of projects as qualified 
     projects for inclusion in the allocation plan established 
     under subsection (f)(2)(A) and shall submit such guidelines 
     and criteria to such committees.
       ``(B) Appropriate committees of congress.--For purposes of 
     subparagraph (A), the term `appropriate committees of 
     Congress' means the Committee on Agriculture, Nutrition, and 
     Forestry, the Committee on Commerce, Science, and 
     Transportation, and the Committee on Finance of the Senate 
     and the Committee on Agriculture, the Committee on Energy and 
     Commerce, and the Committee on Ways and Means of the House of 
     Representatives.
       ``(k) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Bond.--The term `bond' includes any obligation.
       ``(2) Rural area.--The term `rural area' means any area 
     other than--
       ``(A) a city or town which has a population of greater than 
     50,000 inhabitants, or
       ``(B) the urbanized area contiguous and adjacent to such a 
     city or town.
       ``(3) Rural renaissance corporation.--The term `Rural 
     Renaissance Corporation' means the Rural Renaissance 
     Corporation established under section 379E of the 
     Consolidated Farm and Rural Development Act.
       ``(4) Treatment of changes in use.--For purposes of 
     subsection (e)(1)(A), the proceeds from the sale of an issue 
     shall not be treated as used for a qualified project to the 
     extent that the Rural Renaissance Corporation takes any 
     action within its control which causes such proceeds not to 
     be used for a qualified project. The Secretary shall specify 
     remedial actions that may be taken (including conditions to 
     taking such remedial actions) to prevent an action described 
     in the preceding sentence from causing a bond to fail to be a 
     rural renaissance bond.
       ``(5) Partnership; s corporation; and other pass-thru 
     entities.--In the case of a partnership, trust, S 
     corporation, or other pass-thru entity, rules similar to the 
     rules of section 41(g) shall apply with respect to the credit 
     allowable under subsection (a).
       ``(6) Bonds held by regulated investment companies.--If any 
     rural renaissance bond is held by a regulated investment 
     company, the credit determined under subsection (a) shall be 
     allowed to shareholders of such company under procedures 
     prescribed by the Secretary.
       ``(7) Credits may be stripped.--Under regulations 
     prescribed by the Secretary--
       ``(A) In general.--There may be a separation (including at 
     issuance) of the ownership of a rural renaissance bond and 
     the entitlement to the credit under this section with respect 
     to such bond. In case of any such separation, the credit 
     under this section shall be allowed to the person who on the 
     credit allowance date holds the instrument evidencing the 
     entitlement to the credit and not to the holder of the bond.
       ``(B) Certain rules to apply.--In the case of a separation 
     described in subparagraph (A), the rules of section 1286 
     shall apply to the rural renaissance bond as if it were a 
     stripped bond and to the credit under this section as if it 
     were a stripped coupon.
       ``(8) Reporting.--The Rural Renaissance Corporation shall 
     submit reports similar to the reports required under section 
     149(e).''.
       (b) Amendments to Other Code Sections.--
       (1) Reporting.--Subsection (d) of section 6049 of the 
     Internal Revenue Code of 1986 (relating to returns regarding 
     payments of interest) is amended by adding at the end the 
     following new paragraph:
       ``(8) Reporting of credit on rural renaissance bonds.--
       ``(A) In general.--For purposes of subsection (a), the term 
     `interest' includes amounts includible in gross income under 
     section 54(d) and such amounts shall be treated as paid on 
     the credit allowance date (as defined in section 54(b)(4)).
       ``(B) Reporting to corporations, etc.--Except as otherwise 
     provided in regulations, in the case of any interest 
     described in subparagraph (A), subsection (b)(4) shall be 
     applied without regard to subparagraphs (A), (H), (I), (J), 
     (K), and (L)(i) of such subsection.
       ``(C) Regulatory authority.--The Secretary may prescribe 
     such regulations as are necessary or appropriate to carry out 
     the purposes of this paragraph, including regulations which 
     require more frequent or more detailed reporting.''.
       (2) Treatment for estimated tax purposes.--
       (A) Individual.--Section 6654 of such Code (relating to 
     failure by individual to pay estimated income tax) is amended 
     by redesignating subsection (m) as subsection (n) and by 
     inserting after subsection (l) the following new subsection:
       ``(m) Special Rule for Holders of Rural Renaissance 
     Bonds.--For purposes of this section, the credit allowed by 
     section 54 to a taxpayer by reason of holding a rural 
     renaissance bond on a credit allowance date shall be treated 
     as if it were a payment of estimated tax made by the taxpayer 
     on such date.''.
       (B) Corporate.--Subsection (g) of section 6655 of such Code 
     (relating to failure by corporation to pay estimated income 
     tax) is amended by adding at the end the following new 
     paragraph:
       ``(5) Special rule for holders of rural renaissance 
     bonds.--For purposes of this section, the credit allowed by 
     section 54 to a taxpayer by reason of holding a rural 
     renaissance bond on a credit allowance date shall be treated 
     as if it were a payment of estimated tax made by the taxpayer 
     on such date.''.
       (c) Clerical Amendments.--
       (1) The table of subparts for part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new item:

  ``Subpart H. Nonrefundable Credit for Holders of Rural Renaissance 
                               Bonds.''.

       (2) Section 6401(b)(1) of such Code is amended by striking 
     ``and G'' and inserting ``G, and H''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to obligations issued after December 31, 2005.
                                 ______
                                 
      By Mr. BOND (for himself, Mr. Talent, and Mr. DeWine):
  S. 503. A bill to expand Parents as Teachers programs and other 
quality programs of early childhood home visitation, and for other 
purposes; to the Committee on Health, Education, Labor, and Pensions.
  Mr. BOND. Mr. President, I introduced S. 503, the Education Begins At 
Home Act. It is at the desk. It is cosponsored by Senators Talent and 
DeWine. I invite my colleagues to look at it and join with me in this 
significant measure to improve early childhood education and 
development of our children.
  Parents as Teachers has worked in Missouri. It is a program which 
involves training and assistance for parents of children from birth to 
3 years of

[[Page S2010]]

age. We have had significant improvements in educational achievements. 
We have identified problems in children. We have solved problems and 
saved money by avoiding the necessary, expensive, and very difficult 
remedial efforts. It involves home visits. It involves bringing 
children of like age groups together. It works at home. It works for 
the poorest families. It works for very busy two-working-parent 
families. It works on our military installations.
  This measure expands from currently 3,300 children whose parents are 
in the program nationally to potentially 2.7 million families with 
young children throughout the United States. The program is presently 
in all States, in the Union. This expands on it and makes sure we use 
our early education dollars to the maximum benefit. Get parents 
involved. Home visits work.
  Research has clearly shown that the early years are critical in a 
child's development and lay the foundation for success in school and in 
life. The home is the first and most important learning environment for 
children, and parents are their child's first and most influential 
teacher.
  Through parent education and family support, we can promote parents' 
ability to enhance their children's cognitive, language, social-
emotional and physical development--thereby helping parents to prepare 
their children for success in school.
  It only makes sense to equip parents with the skills they need to 
help maximize their child's health and development and this is exactly 
what the Parents at Teachers Program does.
  The curriculum is designed to build the foundation of later learning, 
provide early detection of developmental delays as well as health, 
vision and hearing problems, prevent child abuse and neglect and 
increase children's school readiness and school success.
  To achieve these goals, Parents as Teachers provides personalized 
home visits by trained parent educators, group meetings with other new 
parents and formal screening of vision and hearing.
  Twenty-one years ago I pushed the Early Childhood Education Act 
through the Missouri legislature. During my second term as Governor I 
signed that ground breaking bill into law which mandated PAT in every 
school district in the state of Missouri. For me that was the 
culmination of 5 long years of work.
  One might say I was on a mission. And I was. Because in 1981, I found 
myself in a similar situation to that of the Missouri's current 
Governor. I was about to be a new father myself.
  PAT certainly made a positive difference in my family. PAT helped us 
through sleepless nights, teething, and learning the ABC's. My son, 
Sam, was probably one of the first babies to benefit from the Parents 
as Teachers materials in Missouri. And countless others have benefited 
since.
  What began as an experiment in Missouri has expanded to more than 
3,000 sites in all 50 states, and seven foreign countries. Communities 
all over the world are investing in PAT because the results are 
positive and the cost is low.
  Anecdotally, I can tell you that parents in PAT know that it is a 
tremendous benefit to them and their children.
  The scientifically sound research shows that: At age 3, PAT children 
are more advanced in language, social development, problem solving and 
other cognitive abilities, PAT children score higher on kindergarten 
readiness tests, Children who participate in PAT score higher on 
standardized measures of reading, math and language in first through 
fourth grades, parents who participate in PAT are more confident about 
their parenting and are more involved in their children's schooling--a 
key component of a child's success in school.
  Recognizing that all parents need and deserve support in laying a 
strong foundation for their child's success I will be introducing the 
Education Begins at Home Act.
  To date over 2 million families nationwide have received the 
education and support they need through PAT. While this is a tremendous 
accomplishment, there are more families that can be reached by this 
exceptional program.
  The Education Begins at Home Act makes a bold federal investment in 
parents by establishing the first, dedicated federal funding stream to 
support the expansion of Parents as Teachers--or other home visitation 
programs--at the state and local level.
  The $500 million in federal funds over 3 years included in this bill 
will expand services to over 2.7 million families nationwide.
  Ten times more families will be served by PAT under this legislation.
  This bill will: provide $400 million over 3 years to states to expand 
access to PAT, encourage and foster more collaboration between PAT and 
Early Head Start Grantees, provide $50 million over 3 years to fund 
innovative ideas and partnerships at the local level to expand access 
to PAT in communities with limited English proficiency; and provide $50 
million over 3 years to reach more military families by expanding 
access to PAT in schools and community organizations that serve 
military families.
  All babies are born to learn and a parent is a child's first and most 
important teacher. Parents as Teachers better prepares children for 
success in school and life and helps parents become more active 
participants in their child's education.
  The expansion of Parents as Teachers is a sound investment in the 
future of our children and families.
                                 ______
                                 
      By Mr. KYL (for himself and Mr. McCain):
  S. 505. A bill to amend the Yuma Crossing National Heritage Area Act 
of 2000 to adjust the boundary of the Yuma Crossing National Heritage 
Area; to the Committee on Energy and Natural Resources.
  Mr. KYL. Mr. President, I am pleased to join today with Senator 
McCain to introduce the Yuma Crossing National Heritage Area Boundary 
Adjustment Act. This legislation would amend the Yuma Crossing National 
Heritage Act of 2000, Public Law 106-319, to reduce the size of the 
heritage area to conform to the area set forth in the Heritage Area 
Management Plan approved by the Secretary of the Interior in 2002.
  The Yuma Crossing Heritage Area was designated in October 2000. It 
sprung from a preliminary concept plan completed in 1999 by the 
Heritage Area Task Force. The boundaries proposed in that plan included 
approximately 22 square miles, extending from the Colorado River on the 
north and west to the Avenue 7E alignment on the east and the 12th 
street alignment on the south. These boundaries represented the task 
force's ``best guess'' as to the cultural landscape warranting 
inclusion in the heritage area. This ``best guess'' was incorporated 
into the legislation designating the Yuma Crossing National Heritage 
Area.
  During the development of the final Heritage Area Management Plan, 
which was subject to comprehensive community involvement, it became 
apparent that the area's boundaries were too large and should be more 
concentrated along the Colorado River and in historic downtown.
  Rather than simply leave the boundaries as they were set in the 2000 
legislation, we have heard from the community in Yuma that it is 
important that we conform the boundaries to those in the agreed-upon 
Management Plan. Doing so will provide certainty to the heritage area 
and those private landowners who live within its current boundaries. It 
will allow the heritage area to meet its management goals and 
responsibilities without the worry that private property rights may be 
affected in the future.
  This is a non-controversial, straightforward correction. I hope my 
colleagues will work with me to pass it quickly this year.
                                 ______
                                 
      By Mr. HAGEL (for himself, Mr. Durbin, Ms. Cantwell, Mr. 
        Lautenberg, and Mrs. Murray):
  S. 506. A bill to amend the Public Health Service Act to establish a 
scholarship and loan repayment program for public health preparedness 
workforce development to eliminate critical public health preparedness 
workforce shortages in Federal, State, local, and tribal public health 
agencies; to the Committee on Health, Education, Labor, and Pensions.
  Mr. HAGEL. Mr. President, I rise today with Senator Durbin to 
introduce the Public Health Preparedness Workforce Development Act of 
2005. This legislation aims to increase the

[[Page S2011]]

pipeline of qualified public health workers at the Federal, State, 
local and tribal levels by offering scholarships to students going into 
the public health field. It also encourages current professionals to 
stay in the public health field by providing loan repayments in 
exchange for a commitment of a designated number of years of service in 
public health.
  The average age of lab technicians, epidemiologists, environmental 
health experts, microbiologists, IT specialists, public health 
administrators and others who make up the public health workforce is 
47, seven years older than the average age of the Nation's workforce. 
Over the next five years, my State of Nebraska will have more public 
health workers who are eligible for retirement than any other state in 
the Nation.
  To encourage young people to enter the public health field, this 
legislation authorizes $35 million per year for scholarships and $195 
million per year for loan repayments. Eighty percent of the funds would 
be dedicated for state and local public health workers, with bonus 
payments available to those who agree to be placed in under-served 
areas.
  There are critical public health workforce shortages. We cannot 
afford to lose so many experienced workers just when our public health 
workforce should be expanding to meet increasing health needs. The 
ability of the public health system to respond to emerging infectious 
diseases like West Nile Virus, food-borne illnesses, or bioterrorism 
relies on a well-trained, adequately staffed public health network at 
all levels. It is important that we address this problem before it 
becomes a crisis.
  I urge my colleagues to support this legislation.
                                 ______
                                 
      By Mr. DeWINE (for himself, Mr. Levin, Ms. Stabenow, Mr. Reed, 
        and Mr. Voinovich):
  S. 507. A bill to establish the National Invasive Species Council, 
and for other purposes; to the Committee on Environment and Public 
Works.
  Mr. DeWINE. Mr. President, today, I am pleased to join with Senators 
Levin, Stabenow, Reed, and Voinovich to introduce the National Invasive 
Species Council Act--a bill to permanently establish the National 
Invasive Species Council. I would like to thank my colleagues for their 
hard work on this legislation.
  Recognizing the need for better coordination to combat the economic, 
ecologic, and health threats posed by invasive species, the federal 
government established the National Invasive Species Council by 
Executive Order in 1999. Today, the Council continues to operate and 
develop invasive species management plans. However, the Council is not 
as effective as it could be. The GAO reported that implementing these 
management plans is difficult because the Council does not have a 
congressional mandate to act. GAO further reported that most of the 
agencies that have responsibilities under the National Invasive Species 
Management Plan have not been completing activities by established due 
dates and that these agencies lack coordination. These are significant 
problems that must be addressed.
  Invasive species are a national threat that we cannot afford to 
ignore. Many states are trying to combat these species that are 
threatening their local environments. Examples of such plants and 
animals include the emerald ash borer, which has been particularly 
troublesome in my home state of Ohio; the Chinese mitten crab; and 
hydrilla, considered to be one of the most problematic aquatic plants 
in the United States. If left unchecked, these and other invasive 
species pose dangerous environmental, health, and economic threats. 
Estimates of the annual economic damages caused by invasive species in 
this nation are as high as $137 billion. It is clear that more must be 
done.
  To combat the serious threats posed by invasive species, we need 
federal coordination and planning. Our bill would provide just that and 
on a permanent basis. Under this legislation, the Secretaries of State, 
Commerce, Transportation, Agriculture, Health and Human Services, 
Interior, Defense, and Treasury, along with the Administrators of EPA 
and USAID, would continue to work together through the National 
Invasive Species Council to develop a National Invasive Species 
Management Plan.
  The duties of the Council are generally to coordinate federal 
activities in an effective, complementary, cost-efficient manner; 
update the National Invasive Species Management Plan; ensure that 
federal agencies implement the Management Plan; and develop 
recommendations for international cooperation. Additionally, if 
recommendations are not implemented, agencies would have to report to 
the Council. The Council is directed to develop guidance for federal 
agencies on prevention, control, and eradication of invasive species so 
that federal programs and actions do not increase the risk of invasion 
or spread non-indigenous species. And finally, the bill would establish 
an Invasive Species Advisory Committee to the Council.
  The National Invasive Species Council could enhance its effectiveness 
and better protect our environment from invasive species with a 
congressional mandate. I urge my colleagues to co-sponsor this measure 
so that the Federal Government can better respond to the threat posed 
by invasive species.
                                 ______
                                 
      By Mr. DeWINE (for himself, Mr. Levin, Ms. Stabenow, Mr. Lugar, 
        Mr. Bayh, Mr. Dayton, and Mr. Kohl):
  S. 508. A bill to provide for the environmental restoration of the 
Great Lakes; to the Committee on Environment and Public Works.
  Mr. DeWINE. Mr. President, today I am proud to introduce the Great 
Lakes Environmental Restoration Act with my colleague, Senator Levin. I 
would like to thank him for all of his hard work on this legislation.
  For those who have seen one of the five Great Lakes, it is not 
difficult to understand their importance. Covering more than 94,000 
square miles and draining more than twice as much land, these 
freshwater seas hold an estimated six quadrillion gallons of water--or 
one-fifth of the world's surface freshwater. The Great Lakes ecosystem 
includes such diverse elements as northern evergreen and deciduous 
forests, lake plain prairies, and coastal wetlands. Over 30 of the 
basin's biological communities and over 100 species are globally rare 
or found only in the Great Lakes basin. The 637 State parks in the 
region accommodate more than 250 million visitors each year, and the 
Great Lakes basin is home to more than 33 million people--or one-tenth 
of the U.S. population.
  As co-chairs of the Senate Great Lakes Task Force, Senator Levin and 
I have worked together on legislation and other initiatives to protect 
this natural resource. We secured funding from the National Oceanic and 
Atmospheric Administration (NOAA) for water level gauges, a replacement 
ice-breaking vessel, and funding for the Great Lakes Fishery Commission 
for sea lamprey control. Additionally, Senator Levin and I met with the 
U.S. Trade Representative Office in an effort to prevent Great Lakes 
water from being diverted abroad. We worked to authorize the Great 
Lakes Basin Soil Erosion and Sediment Control Program in the 2002 Farm 
Bill, and three years ago, we joined our colleagues in the House to 
pass the Great Lakes Legacy Act. This legislation provides up to $50 
million per year to the Environmental Protection Agency (EPA) to remove 
contaminated sediments at Areas of Concern.
  These steps are positive, but we are not keeping pace with the 
problems facing the Great Lakes--the Federal Government simply is not 
providing the funding to protect them. An April 2003 Government 
Accountability Office (GAO) report found that the Federal Government 
spent roughly $745 million over the last ten years on Great Lakes 
restoration programs. Now consider that the GAO reported that the eight 
Great Lakes States spent $956 million during that same ten-year period.
  There is ample evidence that this current level of commitment is 
simply not enough to address the challenges. In 2001, there were 
approximately 600 beach closings as a result of e-coli bacteria. 
Further, State and local health authorities issued approximately 1,400 
fish consumption advisories in the Great Lakes. In 1978, the United 
States and Canada amended the Great Lakes Water Quality Agreement to 
give priority attention to 43 designated Areas of Concern. Since the 
signing, the Federal Government has not been able to

[[Page S2012]]

remove any U.S. sites from the Areas of Concern list. Invasive species 
are one of the largest threats to the ecosystem and the $4.5 billion 
Great Lakes fishing industry. There are now over 160 aquatic invasive 
species threatening the Great Lakes. It is imperative that we fix these 
problems.
  For several years, I have been calling for a plan to restore the 
Lakes. I have been urging the governors, mayors, the environmental 
community, and other regional interests to agree on a vision for the 
future of the Great Lakes--not just for the short-term, but for the 
long-term. It is time for us to come together to develop a plan and put 
it in place.
  The bill we are introducing today builds upon the efforts by those in 
the Great Lakes states who are working with the congressional 
delegation and federal officials on the Great Lakes Regional 
Collaboration group. It provides the funding needed to implement their 
recommendations.
  This legislation would provide the tools needed for the long-term 
future of the Great Lakes. First, our bill creates a $6 billion Great 
Lakes Restoration Grant Program to augment existing federal and state 
efforts to clean, protect, and restore the Great Lakes. An additional 
$600 million in annual funding will be appropriated through the EPA's 
Great Lakes National Program Office. The Program Office will provide 
grants to the Great Lakes States, municipalities, and other applicants 
in coordination with the Great Lakes Environmental Restoration Advisory 
Board. This funding will provide the extra resources that existing 
programs do not have.
  While the Great Lakes are a national resource, leaders in the region, 
not Washington bureaucrats, should set priorities and guide restoration 
efforts. That is why our bill requires close coordination between the 
EPA and state and regional interests before grants are released. The 
Great Lakes Environmental Restoration Advisory Board, led by the Great 
Lakes governors, will include mayors, federal agencies, Native American 
tribes, environmentalists, industry representatives, and Canadian 
observers. This Advisory Board will prioritize restoration projects, 
such as invasive species control and prevention, wetlands restoration, 
contaminated sediments cleanup, and water quality improvements. 
Additionally, this Advisory Board will provide recommendations on which 
grant applications to fund. The input from the Advisory Board ensures 
that regional leaders will be critical in determining the long-term 
future of the Great Lakes.
  As the April 2003 GAO study reported, environmental restoration 
activities in the Great Lakes suffer from lack of coordination. The 
second goal of this legislation is the codification of the Great Lakes 
Interagency Task Force to coordinate Federal activities in the Great 
Lakes region. The EPA's Great Lakes National Program Office would serve 
as the council leader, and participants would include key federal 
agencies involved in Great Lakes restoration efforts. The council would 
ensure that the efforts of federal agencies are coordinated, effective, 
and cost-efficient.
  Lastly, this bill would help address a GAO recommendation that a 
monitoring system and environmental indicators be developed to measure 
progress on new and existing restoration programs in the Great Lakes.
  Our bill is a major step in the right direction. I would again like 
to thank my colleague, Senator Levin, for his dedication to the Great 
Lakes and to their restoration. We need to continue to refocus and 
improve our efforts in order to reverse the trend of additional 
degradation of the Great Lakes. They are a unique natural resource for 
Ohio and the entire region--a resource that must be protected for 
future generations. I ask my colleagues to join me in support of this 
bill and in our efforts to help preserve and protect the long-term 
viability of our Great Lakes.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 508

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Great Lakes Environmental 
     Restoration Act''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) the Great Lakes and the connecting channels of the 
     Great Lakes form the largest freshwater system in the world, 
     holding \1/5\ of the fresh surface water supply of the world 
     and \9/10\ of the fresh surface water supply of the United 
     States;
       (2) 30 years after the date of enactment of the Federal 
     Water Pollution Control Act (33 U.S.C. 1251 et seq.), water 
     quality in the Great Lakes has improved, but the Great Lakes 
     remain in a degraded state;
       (3) evidence of the degraded environment of the Great Lakes 
     includes--
       (A) a record 599 closings of Great Lakes beaches in 2001;
       (B) an increase to 20 percent in the percentage of Great 
     Lakes shoreline that contains polluted sediments; and
       (C) the issuance by State and local authorities of 1,400 
     fish consumption advisories relating to the Great Lakes;
       (4) the Great Lakes are sources of drinking water for 
     approximately 40,000,000 people in the United States and 
     Canada;
       (5) in the years since the Great Lakes Water Quality 
     Agreement was signed and the United States and Canada agreed 
     to ``restore and maintain the chemical, physical, and 
     biological integrity of the waters of the Great Lakes Basin 
     and give priority attention to the 43 designated Areas of 
     Concern'', no sites have been restored in the United States;
       (6) it is the responsibility of the Federal Government and 
     State and local governments to ensure that the Great Lakes 
     remain a clean and safe source of water for drinking, 
     fishing, and swimming; and
       (7) while the total quantity of resources needed to restore 
     the Great Lakes is unknown, additional funding is needed now 
     to augment existing efforts to address the known threats 
     facing the Great Lakes.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Board.--The term ``Board'' means the Great Lakes 
     Environmental Restoration Advisory Board established by 
     section 5(a).
       (2) Great lake.--The term ``Great Lake'' means--
       (A) Lake Erie;
       (B) Lake Huron (including Lake Saint Clair);
       (C) Lake Michigan;
       (D) Lake Ontario;
       (E) Lake Superior; and
       (F) the connecting channels of those Lakes, including--
       (i) the Saint Marys River;
       (ii) the Saint Clair River;
       (iii) the Detroit River;
       (iv) the Niagara River; and
       (v) the Saint Lawrence River to the Canadian border.
       (3) Great lakes state.--The term ``Great Lakes State'' 
     means each of the States of Illinois, Indiana, Ohio, 
     Michigan, Minnesota, New York, Pennsylvania, and Wisconsin.
       (4) Great lakes system.--The term ``Great Lakes system'' 
     means all the streams, rivers, lakes, and other bodies of 
     water in the drainage basin of the Great Lakes.
       (5) Program.--The term ``Program'' means the Great Lakes 
     Environmental Restoration Grant Program established by 
     section 4(a).
       (6) Program office.--The term ``Program Office'' means the 
     Great Lakes National Program Office of the Environmental 
     Protection Agency.
       (7) Task force.--The term ``Task Force'' means the Great 
     Lakes Interagency Task Force established by section 6(a).

     SEC. 4. GREAT LAKES RESTORATION GRANTS.

       (a) Establishment.--There is established a Great Lakes 
     Environmental Restoration Grant Program, to be administered 
     by the Program Office.
       (b) Grants.--
       (1) In general.--In coordination with the Board, the 
     Program Office shall provide to States, municipalities, and 
     other applicants grants for use in and around the Great Lakes 
     in carrying out--
       (A) contaminated sediment cleanup;
       (B) wetland restoration;
       (C) invasive species control and prevention;
       (D) coastal wildlife and fisheries habitat improvement;
       (E) public access improvement;
       (F) water quality improvement;
       (G) sustainable water use;
       (H) nonpoint source pollution reduction; or
       (I) such other projects and activities to restore, protect, 
     and assist the recovery of the Great Lakes as the Board may 
     determine.
       (2) Distribution.--In providing grants under this section 
     for a fiscal year, the Program Office shall ensure that--
       (A) at least 1 project or activity is funded in each Great 
     Lakes State for the fiscal year;
       (B) the amount of funds received by each Great Lakes State 
     under this section for the fiscal year is at least 6 percent, 
     but not more than 30 percent, of the total amount of funds 
     made available for grants under this section for the fiscal 
     year;
       (C) each project or activity for which funding is provided 
     results in 1 or more tangible improvements in the Great Lakes 
     watershed; and
       (D) each project or activity for which funding is provided 
     addresses 1 or more priority issue areas identified by the 
     Board for the fiscal year.
       (3) Grant evaluation.--
       (A) In general.--In evaluating grant proposals, the Program 
     Office shall give great

[[Page S2013]]

     weight to the ranking of proposals by the Board under section 
     5(c)(3).
       (B) Decision not to fund.--Not later than 30 days after the 
     date of the determination, if the Program Office decides not 
     to fund a grant proposal ranked by the Board as 1 of the top 
     10 proposals meriting funding, the Program Office shall 
     provide to the Board a written statement explaining the 
     reasons why the proposal was not funded.
       (4) Funding limitations.--Funds provided under the Program 
     shall not be used for any of the following activities:
       (A) Design, construction, or improvement of a road, except 
     as required in connection with a sewer upgrade.
       (B) Design, implementation, or evaluation of a research or 
     monitoring project or activity, except as required in 
     connection with a project or activity that will result in a 
     tangible improvement to the Great Lakes watershed.
       (C) Design or implementation of a beautification project or 
     activity that does not result in a tangible improvement to 
     the Great Lakes watershed.
       (D) Litigation expenses, including legal actions to address 
     violations of the Federal Water Pollution Control Act (33 
     U.S.C. 1251 et seq.), the Endangered Species Act of 1973 (16 
     U.S.C. 1531 et seq.), or any other environmental law or 
     regulation.
       (E) Lobbying expenses (as defined in section 2 of the 
     Lobbying Disclosure Act of 1995 (2 U.S.C. 1602)).
       (c) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated to 
     carry out this section $600,000,000 for each of fiscal years 
     2006 through 2015.
       (2) Cost sharing.--The Federal share of the cost of any 
     project or activity carried out using funds made available 
     under paragraph (1) shall not exceed 80 percent.
       (3) In-kind contributions.--The non-Federal share of the 
     cost of any project or activity carried out using funds made 
     available under paragraph (1) may be provided in cash or in 
     kind.

     SEC. 5. GREAT LAKES ENVIRONMENTAL RESTORATION ADVISORY BOARD.

       (a) Establishment.--There is established a committee to be 
     known as the ``Great Lakes Environmental Restoration Advisory 
     Board''.
       (b) Membership.--
       (1) In general.--The Board shall be composed of 21 voting 
     members (or designees of the members), of whom--
       (A) 8 shall be the Governors of the Great Lakes States;
       (B) 1 shall be the Director of the Great Lakes National 
     Program Office;
       (C) 1 shall be the Secretary of the Interior;
       (D) 1 shall be the Director of the National Oceanic and 
     Atmospheric Administration;
       (E) 1 shall be the Chief of Engineers;
       (F) 1 shall be the Secretary of Agriculture; and
       (G) 8 shall be chief executives of cities, counties, or 
     municipalities in the Great Lakes basin and selected by the 
     Steering Committee of the Great Lakes Cities Initiative, 
     including 1 member from each Great Lakes State.
       (2) Observers.--The Board may include observers, 
     including--
       (A) the Premiers of the Canadian Provinces of Ontario and 
     Quebec;
       (B) a representative of the Government of Canada;
       (C) a representative of the State Department;
       (D) 8 representatives of environmental organizations (with 
     1 member appointed by the Governor of each Great Lakes 
     State), including--
       (i) Great Lakes United;
       (ii) the Lake Michigan Federation;
       (iii) the National Wildlife Federation;
       (iv) the Sierra Club; and
       (v) The Nature Conservancy;
       (E) 5 representatives of industry selected by the 
     chairperson of the Board;
       (F) the Chairperson of the United States section of the 
     International Joint Committee;
       (G) the Vice Chairperson of the United States section of 
     the Great Lakes Fishery Commission;
       (H) the Chairperson of the Great Lakes Commission; and
       (I) 3 representatives of Native Americans selected by the 
     President.
       (3) Date of appointments.--The appointment of each member 
     of the Board shall be made not later than 90 days after the 
     date of enactment of this Act.
       (4) Term; vacancies.--
       (A) Term.--A member of the Board shall be appointed for 5 
     years.
       (B) Vacancies.--A vacancy on the Board--
       (i) shall not affect the powers of the Board; and
       (ii) shall be filled in the same manner as the original 
     appointment was made.
       (5) Meetings.--The Board shall meet at the call of the 
     chairperson.
       (6) Chairperson.--The Board shall select a chairperson of 
     the Board from the members appointed under paragraph (1)(A).
       (c) Duties.--
       (1) In general.--Before the beginning of the fiscal year, 
     the Board shall determine by majority vote, and shall submit 
     to the Program Office, the funding priority issue areas that 
     shall apply to all grants provided under section 4 during the 
     fiscal year.
       (2) Great lakes goals.--The priorities shall be based on 
     environmental restoration goals for the Great Lakes that--
       (A) are prepared by the Governors of Great Lakes States; 
     and
       (B) identify specific objectives and the best methods by 
     which to produce a tangible improvement to the Great Lakes.
       (3) Grants.--
       (A) Program office.--The Program Office shall provide to 
     the Board, in a timely manner, copies of grant proposals 
     submitted under section 4.
       (B) Board.--The Board shall--
       (i) review the grant proposals; and
       (ii) by a date specified by the Program Office, provide to 
     the Program Office a list of the grant applications that the 
     Board recommends for funding, ranked in order of the 
     applications that most merit funding.

     SEC. 6. GREAT LAKES INTERAGENCY TASK FORCE.

       (a) Establishment.--There is established, in the 
     Environmental Protection Agency, the Great Lakes Interagency 
     Task Force.
       (b) Purposes.--The purposes of the Task Force are--
       (1) to help establish a process for collaboration among the 
     members of the Task Force, the members of the working group 
     established under subsection (e)(1), the Great Lakes States, 
     local communities, tribes, regional bodies, and other 
     interests in the Great Lakes region regarding policies, 
     strategies, projects, and priorities for the Great Lakes 
     system;
       (2) to collaborate with Canada and binational bodies 
     involved in the Great Lakes region regarding policies, 
     strategies, projects, and priorities for the Great Lakes 
     system;
       (3) to coordinate the development of consistent Federal 
     policies, strategies, projects, and priorities for addressing 
     the restoration and protection of the Great Lakes system and 
     assisting in the appropriate management of the Great Lakes 
     system;
       (4) to develop outcome-based goals for the Great Lakes 
     system relying on--
       (A) existing data and science-based indicators of water 
     quality and related environmental factors, and other factors;
       (B) focusing on outcomes such as cleaner water, sustainable 
     fisheries, and biodiversity of the Great Lakes system; and
       (C) ensuring that Federal policies, strategies, projects, 
     and priorities support measurable results;
       (5) to exchange information regarding policies, strategies, 
     projects, and priorities related to the Great Lakes system 
     between the agencies represented on the Task Force;
       (6) to coordinate action of the Federal Government 
     associated with the Great Lakes system;
       (7) to ensure coordinated Federal scientific and other 
     research associated with the Great Lakes system;
       (8) to ensure coordinated development and implementation of 
     the Great Lakes portion of the Global Earth Observation 
     System of Systems by the Federal Government; and
       (9) to provide assistance and support to agencies 
     represented on the Task Force in the activities of the 
     agencies related to the Great Lakes system.
       (c) Membership and Operation.--
       (1) In general.--The Task Force shall consist of--
       (A) the Administrator of the Environmental Protection 
     Agency;
       (B) the Secretary of State;
       (C) the Secretary of the Interior;
       (D) the Secretary of Agriculture;
       (E) the Secretary of Commerce;
       (F) the Secretary of Housing and Urban Development;
       (G) the Secretary of Transportation;
       (H) the Secretary of Homeland Security;
       (I) the Secretary of the Army; and
       (J) the Chairperson of the Council on Environmental 
     Quality.
       (2) Operation.--A member of the Task Force may designate to 
     perform the Task Force functions of the member any person who 
     is part of the department, agency, or office of the member 
     and who is--
       (A) an officer of the United States appointed by the 
     President; or
       (B) a full-time employee of the United States serving in a 
     position with pay equal to or great than the minimum rate 
     payable for grade GS-15 of the General Schedule.
       (d) Chairperson.--The Administrator of the Environmental 
     Protection Agency shall serve as chairperson of the Task 
     Force.
       (e) Duties.--
       (1) Great lakes regional working group.--
       (A) In general.--The Task Force shall establish a Great 
     Lakes regional working group to coordinate and make 
     recommendations on how to implement the policies, strategies, 
     projects, and priorities of the Task Force.
       (B) Membership.--The working group established under 
     subparagraph (A) shall consist of the appropriate regional 
     administrator or director with programmatic responsibility 
     for the Great Lakes system for each agency represented on the 
     Task Force, including--
       (i) the Great Lakes National Program Office of the 
     Environmental Protection Agency;
       (ii) the United States Fish and Wildlife Service of the 
     Department of the Interior;
       (iii) the National Park Service of the Department of the 
     Interior;
       (iv) the United States Geological Survey of the Department 
     of the Interior;
       (v) the Natural Resources Conservation Service of the 
     Department of Agriculture;
       (vi) the Forest Service of the Department of Agriculture;

[[Page S2014]]

       (vii) the National Oceanic and Atmospheric Administration 
     of the Department of Commerce;
       (viii) the Department of Housing and Urban Development;
       (ix) the Department of Transportation;
       (x) the Coast Guard in the Department of Homeland Security; 
     and
       (xi) the Corps of Engineers.
       (2) Principles of successful regional collaboration.--The 
     chairperson of the Task Force shall coordinate the 
     development of a set of principles of successful regional 
     collaboration to advance the policy set forth in section 1 of 
     the Great Lakes Interagency Task Force: Executive Order dated 
     May 18, 2004.
       (3) Report.--Not later than May 31, 2005, and annually 
     thereafter as appropriate, the Task Force shall submit to the 
     President a report that--
       (A) summarizes the activities of the Task Force; and
       (B) provides any recommendations that would, in the 
     judgment of the Task Force, advance the policy set forth in 
     section 1 of the Great Lakes Interagency Task Force: 
     Executive Order dated May 18, 2004.

     SEC. 7. GREAT LAKES WATER QUALITY INDICATORS AND MONITORING.

       (a) In General.--Section 118(c)(1) of the Federal Water 
     Pollution Control Act (33 U.S.C. 1268(c)(1)) is amended by 
     striking subparagraph (B) and inserting the following:
       ``(B)(i) not later than 2 years after the date of enactment 
     of this clause, in cooperation with Canada and appropriate 
     Federal agencies (including the United States Geological 
     Survey, the National Oceanic and Atmospheric Administration, 
     and the United States Fish and Wildlife Service), develop and 
     implement a set of science-based indicators of water quality 
     and related environmental factors in the Great Lakes, 
     including, at a minimum, measures of toxic pollutants that 
     have accumulated in the Great Lakes for a substantial period 
     of time, as determined by the Program Office;
       ``(ii) not later than 4 years after the date of enactment 
     of this clause--
       ``(I) establish a Federal network for the regular 
     monitoring of, and collection of data throughout, the Great 
     Lakes basin with respect to the indicators described in 
     clause (i); and
       ``(II) collect an initial set of benchmark data from the 
     network; and
       ``(iii) not later than 2 years after the date of collection 
     of the data described in clause (ii)(II), and biennially 
     thereafter, in addition to the report required under 
     paragraph (10), submit to Congress, and make available to the 
     public, a report that--
       ``(I) describes the water quality and related environmental 
     factors of the Great Lakes (including any changes in those 
     factors), as determined through the regular monitoring of 
     indicators under clause (ii)(I) for the period covered by the 
     report; and
       ``(II) identifies any emerging problems in the water 
     quality or related environmental factors of the Great 
     Lakes.''.
       (b) Authorization of Appropriations.--Section 118 of the 
     Federal Water Pollution Control Act (33 U.S.C. 1268) is 
     amended by striking subsection (h) and inserting the 
     following:
       ``(h) Authorization of Appropriations.--
       ``(1) In general.--There is authorized to be appropriated 
     to carry out this section (other than subsection (c)(1)(B)) 
     $25,000,000 for each of fiscal years 2006 through 2010.
       ``(2) Great lakes water quality indicators and 
     monitoring.--There are authorized to be appropriated to carry 
     out subsection (c)(1)(B)--
       ``(A) $4,000,000 for fiscal year 2006;
       ``(B) $6,000,000 for fiscal year 2007;
       ``(C) $8,000,000 for fiscal year 2008; and
       ``(D) $10,000,000 for fiscal year 2009.''.
                                 ______
                                 
      By Mrs. FEINSTEIN (for herself, Mr. Levin, Mr. Wyden, Mr. Harkin, 
        and Ms. Cantwell):
  S. 509. A bill to improve the operation of energy markets; to the 
Committee on Agriculture, Nutrition, and Forestry.
  Mrs. FEINSTEIN. Mr. President, in light of the most recent evidence 
uncovered about Enron's participation in the Western Energy Crisis, I 
rise today to introduce the Energy Market Oversight Bill with Senators 
Levin, Harkin, Cantwell and Wyden.
  This bill would: Improve Price Transparency in Wholesale Electricity 
Markets. The bill directs the Federal Energy Regulatory Commission to 
establish an electronic system to provide information about the price 
and availability of wholesale electricity to buyers, and sellers, and 
the public.
  Prohibit Round Trip Electricity Trades. The bill prohibits the 
simultaneous buying and selling of the same quantity of electricity at 
the same price in the same location with no financial gain or loss. 
Round trip or ``wash trades'' are essentially bogus trades whereby no 
electricity changes hands, but the profit from the trades enriches the 
bottom-line of a company's financial report.
  Increase Penalties for Violations of Federal Power Act. Maximum fines 
for violations of the Federal Power Act are increased from $5,000 to 
$1,000,000.; and maximum sentences are increased from 2 to 5 years. 
Current fines are extraordinarily low and therefore provide no 
deterrence to illegal activity.
  Increase Penalties for Violations of Natural Gas Act. The bill 
increases maximum fines for violations of the Natural Gas Act from 
$5,000 to $1,000,000.
  Prohibit Manipulation in Electricity Markets. Manipulation is 
prohibited in the wholesale electricity markets and FERC is given 
discretionary authority to revoke market-based rates for violations. 
Strangely enough, manipulation of energy markets is not specifically 
prohibited. This would add language to Part II of the Federal Power 
Act.
  Repeal the ``Enron exemption''. Repeals the Commodities Future 
Modernization Act exemption for large traders in energy commodities and 
applies the anti-manipulation and anti-fraud provisions of the 
Commodities Exchange Act to all Over the Counter trades in energy 
commodities and derivatives. In my view, when Congress exempted energy 
from the Commodity Futures Modernization Act of 2000, it created the 
playing field for the Western Energy Crisis of 2000 and 2001, and cost 
millions of people millions of dollars.
  Provide CFTC the Tools to Monitor OTC Energy Markets. For Over the 
Counter trades in energy commodities and derivatives that perform a 
significant price discovery function, including trades on electronic 
trading facilities, the bill requires large sophisticated traders to 
keep records and report large trades to the CFTC. This does not change 
the law, only applies the law that exists for futures contracts to over 
the counter trades in the energy markets.
  Limit on Use of Data. Requires the Commodity Futures Trading 
Commission to seek information that is necessary for the limited 
purposes of detecting and preventing manipulation in the futures and 
over the counter markets for energy; to keep proprietary trade and 
business data confidential except when used for law enforcement 
purposes. This does not require the real-time publication of 
proprietary data.
  No Effect on Non-Energy Commodities or Derivatives. The bill would 
not alter or affect the regulation of futures markets, financial 
derivatives, or metals. We have specifically stated on page 20 the 
following: ``The amendments made by this title have no effect on the 
regulation of excluded commodities under the Commodity Exchange Act.''
  In addition, the bill states: ``The amendments made by this title 
have no effect on the regulation of metals under the Commodity Exchange 
Act.''
  The Western Energy Crisis of 2000-2001 has still not been resolved. 
Meanwhile, more and more information about Enron's role in the crisis 
emerges. On February 3, 2005, the Snohomish Public Utility District 
released transcripts of tapes showing that on January 17, 2001, Enron 
traders concocted false repairs for a Las Vegas power plant--making 
power unavailable that would have been delivered to California--on the 
very same day that supplies were so tight that Northern California 
experienced a Stage 3 power emergency and rolling blackouts hit as many 
as 2 million consumers.
  By taking the plant offline, Enron was also in direct violation of an 
Emergency Power Order by U.S. Energy Secretary Bill Richardson that 
required power generators to make power available to California.
  Telephone transcripts between Enron and the Las Vegas plant 
confirming the effort to falsify repairs read as follows:

       Bill: Rich: Ah, we want you guys to get a little creative.
       Rich: OK.
       Bill: And come up with a reason to go down.
       Rich: OK.
       Bill: Anything you want to do over there? Any----
       Rich: Ah----
       Bill: Cleaning, anything like that?
       Rich: Yeah, Yeah. There's some stuff we could be doing.

  Enron knew exactly what it was doing when it manipulated the Western 
Energy markets. Enron traders tested gaming techniques in the 
California market as early as May 1998, creating imbalances in the 
California market as a result of loopholes it discovered in the system.
  The schemes the company used in 2000-2001 had already been rehearsed 
in

[[Page S2015]]

Canada. ``Project Stanley'' was one such technique--Enron traders 
inflated energy prices in Alberta, Canada by colluding with other 
energy marketers.
  Enron advocated for ``de-regulation'' of California's energy markets 
while drafting language that was full of loopholes it could exploit. 
Similarly, the company was the main force behind a provision that 
exempted it from federal oversight. This exemption, known as the 
``Enron loophole,'' was created in 2000 when Congress passed the 
Commodity Futures Modernization Act.
  The loophole exempted energy trading from regulatory oversight and 
excluded it completely if the trade was done electronically.
  We must close this loophole in order to prohibit fraud and price 
manipulation in all over-the-counter energy commodity transactions, and 
provide the Commodity Futures Trading Commission the authority it needs 
to investigate and prosecute allegations of fraud and manipulation.
  We need to give the CFTC this authority because we learned during the 
Western Energy Crisis that there was pervasive manipulation and fraud 
in energy markets, and that FERC and the CFTC were unable or unwilling 
to use the authority they had to intervene.
  We need to give the CFTC this authority because we need regulators to 
protect consumers and make sure they're not taken advantage of.
  We need to give the CFTC this authority because when there are 
inadequate regulations, consumers are ripped off.
  The Western Energy Crisis cost California about $40 billion. 
California has been asking for $9 billion in refunds. However, given 
the fact that Enron is in bankruptcy, it would be a miracle if the 
State receives even half of that amount.
  Yet there is nothing preventing another energy crisis from happening 
again, in my State or elsewhere.
  Therefore, we need Federal oversight of our energy markets.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 509

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Energy 
     Markets Improvement Act of 2005''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

         TITLE I--TRANSPARENCY IN WHOLESALE ELECTRICITY MARKETS

Sec. 101. Market transparency.
Sec. 102. Round trip trading.
Sec. 103. Enforcement.
Sec. 104. Refund effective date.
Sec. 105. Discovery and evidentiary hearings under the Federal Power 
              Act.

                     TITLE II--MARKET MANIPULATION

Sec. 201. Prohibition of market manipulation.

                   TITLE III--ENERGY MARKET OVERSIGHT

Sec. 301. Over-the-counter transactions in energy commodities.
Sec. 302. Electronic trading facilities for energy commodities.
Sec. 303. No effect on other authority.
Sec. 304. Prohibition of fraudulent transactions.
Sec. 305. Criminal and civil penalties.
Sec. 306. Conforming amendments.

         TITLE I--TRANSPARENCY IN WHOLESALE ELECTRICITY MARKETS

     SEC. 101. MARKET TRANSPARENCY.

       Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is 
     amended by adding at the end the following:

     ``SEC. 215. MARKET TRANSPARENCY.

       ``(a) In General.--Not later than 180 days after the date 
     of enactment of this section, the Commission shall promulgate 
     regulations establishing an electronic information system to 
     provide the Commission and the public with access to such 
     information as is appropriate to facilitate price 
     transparency and participation in markets subject to the 
     jurisdiction of the Commission.
       ``(b) Information To Be Made Available.--
       ``(1) In general.--The system under subsection (a) shall 
     provide information about the availability and market price 
     of wholesale electric energy and transmission services to the 
     Commission, State commissions, buyers and sellers of 
     wholesale electric energy, users of transmission services, 
     and the public.
       ``(2) Protection of consumers and competitive markets.--In 
     determining the information to be made available under the 
     system and the time at which to make such information 
     available, the Commission shall seek to ensure that consumers 
     and competitive markets are protected from false or 
     misleading information and from the adverse effects of 
     potential collusion or other anticompetitive behaviors that 
     can be facilitated by untimely public disclosure of 
     transaction-specific information.
       ``(c) Authority To Obtain Information.--The Commission 
     shall have authority to obtain information described in 
     subsections (a) and (b) from any electric utility or 
     transmitting utility (including any entity described in 
     section 201(f)).
       ``(d) Exemption.--The Commission shall exempt from 
     disclosure information that the Commission determines would, 
     if disclosed--
       ``(1) be detrimental to the operation of an effective 
     market; or
       ``(2) jeopardize system security.
       ``(e) Applicability.--The system under subsection (a) shall 
     not apply to an entity described in section 212(k)(2)(B) with 
     respect to transactions for the purchase or sale of wholesale 
     electric energy and transmission services within the area 
     described in section 212(k)(2)(A).''.

     SEC. 102. ROUND TRIP TRADING.

       Part II of the Federal Power Act (16 U.S.C. 824 et seq.) 
     (as amended by section 101) is amended by adding at the end 
     the following:

     ``SEC. 216. ROUND TRIP TRADING.

       ``(a) Prohibition.--It shall be unlawful for any person or 
     entity (including an entity described in section 201(f)) 
     knowingly to enter into any contract or other arrangement to 
     execute a round trip trade.
       ``(b) Definition of Round Trip Trade.--In this section, the 
     term `round trip trade' means a transaction (or combination 
     of transactions) in which a person or entity, with the intent 
     to affect reported revenues, trading volumes, or prices--
       ``(1) enters into a contract or other arrangement to 
     purchase from, or sell to, any other person or entity 
     electric energy at wholesale; and
       ``(2) simultaneously with entering into the contract or 
     arrangement described in paragraph (1), arranges a 
     financially offsetting trade with the other person or entity 
     for the same electric energy at substantially the same 
     location, price, quantity, and terms so that, collectively, 
     the purchase and sale transactions in themselves result in a 
     de minimis or no financial gain or loss.''.

     SEC. 103. ENFORCEMENT.

       (a) Complaints.--Section 306 of the Federal Power Act (16 
     U.S.C. 825e) is amended--
       (1) in the first sentence--
       (A) by inserting ``(including an electric utility)'' after 
     ``Any person''; and
       (B) by inserting ``, transmitting utility,'' after 
     ``licensee''; and
       (2) in the second sentence, by inserting ``, transmitting 
     utility,'' after ``licensee''.
       (b) Investigations.--Section 307(a) of the Federal Power 
     Act (16 U.S.C. 825f(a)) is amended in the first sentence by 
     inserting ``(including a transmitting utility)'' after ``any 
     person''.
       (c) Review of Commission Orders.--Section 313(a) of the 
     Federal Power Act (16 U.S.C. 825l) is amended in the first 
     sentence by inserting ``(including an electric utility)'' 
     after ``Any person''.
       (d) Criminal Penalties.--Section 316 of the Federal Power 
     Act (16 U.S.C. 825o) is amended--
       (1) in subsection (a)--
       (A) by striking ``$5,000'' and inserting ``$1,000,000''; 
     and
       (B) by striking ``two years'' and inserting ``5 years'';
       (2) in subsection (b), by striking ``$500'' and inserting 
     ``$25,000''; and
       (3) by striking subsection (c).
       (e) Civil Penalties.--Section 316A of the Federal Power Act 
     (16 U.S.C. 825o-1) is amended--
       (1) in subsections (a) and (b), by striking ``section 211, 
     212, 213, or 214'' each place it appears and inserting ``part 
     II''; and
       (2) in subsection (b), by striking ``$10,000'' and 
     inserting ``$1,000,000''.
       (f) General Penalties.--Section 21 of the Natural Gas Act 
     (15 U.S.C. 717t) is amended--
       (1) in subsection (a), by striking ``$5,000'' and inserting 
     ``$1,000,000'', and by striking ``two years'' and inserting 
     ``5 years''; and
       (2) in subsection (b), by striking ``$500'' and inserting 
     ``$50,000''.

     SEC. 104. REFUND EFFECTIVE DATE.

       Section 206(b) of the Federal Power Act (16 U.S.C. 824e(b)) 
     is amended--
       (1) in the second sentence, by striking ``the date 60 days 
     after the filing of such complaint nor later than 5 months 
     after the expiration of such 60-day period'' and inserting 
     ``the date of the filing of the complaint nor later than 5 
     months after the filing of the complaint'';
       (2) in the third sentence--
       (A) by striking ``60 days after the'' and inserting ``of''; 
     and
       (B) by striking ``expiration of such 60-day period'' and 
     inserting ``publication date''; and
       (3) by striking the fifth sentence and inserting the 
     following: ``If no final decision is rendered by the 
     conclusion of the 180-day period that begins on the date of 
     institution of a proceeding under this section, the 
     Commission shall state the reasons why the Commission has 
     failed to do so and shall state its best estimate as to when 
     the Commission reasonably expects to render a final 
     decision.''.

     SEC. 105. DISCOVERY AND EVIDENTIARY HEARINGS UNDER THE 
                   FEDERAL POWER ACT.

       The Federal Power Act is amended--

[[Page S2016]]

       (1) in section 206 (16 U.S.C. 824e), by adding at the end 
     the following:
       ``(e) Discovery and Evidentiary Hearings.--On receipt of a 
     complaint by a State or a State Commission under subsection 
     (a), the Commission shall provide--
       ``(1) an opportunity for the State or the State Commission 
     to conduct reasonable discovery; and
       ``(2) on request of the State or the State Commission and a 
     showing of a dispute as to material facts, an evidentiary 
     hearing.''; and
       (2) in section 306 (16 U.S.C. 825e)--
       (A) by inserting ``(a) In General.--'' before ``Any 
     person''; and
       (B) by adding at the end the following:
       ``(b) Discovery and Evidentiary Hearings.--On receipt of a 
     complaint by a State or State Commission under this section, 
     the Commission shall provide--
       ``(1) an opportunity for the State or the State Commission 
     to conduct reasonable discovery; and
       ``(2) on request of the State or the State Commission and a 
     showing of dispute as to material facts, an evidentiary 
     hearing.''.

                     TITLE II--MARKET MANIPULATION

     SEC. 201. PROHIBITION OF MARKET MANIPULATION.

       (a) In General.--Part II of the Federal Power Act (as 
     amended by section 102) is amended by adding at the end the 
     following:

     ``SEC. 217. PROHIBITION OF MARKET MANIPULATION.

       ``(a) In General.--It shall be unlawful for any person, 
     directly or indirectly, to knowingly use or employ, in 
     connection with the purchase or sale of electric energy or 
     the purchase or sale of transmission services subject to the 
     jurisdiction of the Commission, any manipulative or deceptive 
     device or contrivance to affect the price, availability, or 
     reliability of the electric energy or transmission services.
       ``(b) Regulations.--The Commission may promulgate 
     regulations as appropriate in the public interest or for the 
     protection of electric ratepayers to enforce this section.''.
       (b) Additional Remedy for Market Manipulation.--Section 206 
     of the Federal Power Act (16 U.S.C. 824e) is amended by 
     adding at the end the following:
       ``(e) Remedy for Market Manipulation.--If the Commission 
     finds that a public utility has knowingly employed any 
     manipulative or deceptive device or contrivance in violation 
     of this Act (including a regulation promulgated under this 
     Act), the Commission may, in addition to any other remedy 
     available under this Act, revoke the authority of the public 
     utility to charge market-based rates.''.

                   TITLE III--ENERGY MARKET OVERSIGHT

     SEC. 301. OVER-THE-COUNTER TRANSACTIONS IN ENERGY 
                   COMMODITIES.

       (a) Definitions.--Section 1a of the Commodity Exchange Act 
     (7 U.S.C. 1a) is amended by adding at the end the following:
       ``(34) Included energy transaction.--The term `included 
     energy transaction' means a contract, agreement, or 
     transaction in an energy commodity that is--
       ``(A)(i) executed or traded on an electronic trading 
     facility; and
       ``(ii) entered into on a principal-to-principal basis 
     solely between persons that are eligible commercial entities 
     at the time the persons enter into the agreement, contract, 
     or transaction; or
       ``(B)(i) executed or traded not on or through a trading 
     facility; and
       ``(ii) entered into solely between persons that are 
     eligible contract participants at the time the persons enter 
     into the agreement, contract, or transaction, regardless of 
     the means of execution of the agreement, contract, or 
     transaction.
       ``(35) Energy commodity.--
       ``(A) In general.--The term `energy commodity' means a 
     commodity (other than an excluded commodity, a metal, or an 
     agricultural commodity) that is used as a source of energy.
       ``(B) Inclusions.--The term `energy commodity' includes--
       ``(i) coal;
       ``(ii) crude oil, gasoline, heating oil, and propane;
       ``(iii) electricity; and
       ``(iv) natural gas.
       ``(36) Electronic energy trading facility.--The term 
     `electronic energy trading facility' means an electronic 
     trading facility on or through which included energy 
     transactions are traded or executed.''.
       (b) Off-Exchange Transactions in Energy Commodities.--
     Section 2(g) of the Commodity Exchange Act (7 U.S.C. 2(g)) is 
     amended--
       (1) by inserting ``or an energy commodity'' after 
     ``agricultural commodity'';
       (2) by redesignating paragraphs (1) through (3) as 
     subparagraphs (A) through (C), respectively;
       (3) by striking ``No provision'' and inserting the 
     following:
       ``(1) In general.--No provision''; and
       (4) by adding at the end the following:
       ``(2) Transactions in Energy Commodities.--
       ``(A) In general.--Except as provided in subparagraphs (B) 
     and (C) and subsection (h)(7), nothing in this Act applies to 
     an included energy transaction.
       ``(B) Prohibited conduct.--
       ``(i) In general.--An included energy transaction shall be 
     subject to--

       ``(I) sections 5b, 12(e)(2)(B), and 22(a)(4); and
       ``(II) the prohibitions in sections 4b, 4c(a), 4c(b), 4o, 
     6(c), 6(d), 6c, 6d, 8a, and 9(a)(2).

       ``(ii) Transactions exempted by commission action.--
     Notwithstanding any exemption by the Commission under section 
     4(c), an included energy transaction shall be subject to the 
     sections specified in clause (i) of this subparagraph, 
     subparagraph (C), and subsection (h)(7).
       ``(C) Reporting and recordkeeping requirements.--
       ``(i) In general.--An eligible contract participant that 
     enters into or executes an included energy transaction that 
     performs, or together with other such transactions performs, 
     a significant price discovery function in the cash market for 
     an energy commodity or in any other market for agreements, 
     contracts, or transactions relating to an energy commodity, 
     or an eligible commercial entity that enters into or executes 
     an included energy transaction described in section 1a(34)(A) 
     shall--

       ``(I) provide to the Commission on a timely basis the 
     information required under clause (ii); and
       ``(II)(aa) consistent with section 4i, maintain books and 
     records relating to each included energy transaction, for a 
     period of at least 5 years after the date of the transaction, 
     in such form as the Commission shall require; and
       ``(bb) keep the books and records open to inspection by any 
     representative of the Commission or the Attorney General.

       ``(ii) Required information.--

       ``(I) In general.--The Commission shall require that such 
     information regarding included energy transactions be 
     provided to the Commission as the Commission considers 
     necessary to assist in detecting and preventing price 
     manipulation.
       ``(II) Information to be included.--Such information shall 
     include information regarding large trading positions 
     obtained through 1 or more included energy transactions that 
     involve--

       ``(aa) substantial quantities of the commodity in the cash 
     market; or
       ``(bb) substantial positions, investments, or trades in 
     agreements or contracts related to energy commodities.

       ``(III) Manner of compliance.--The Commission shall specify 
     when and how such information shall be provided and 
     maintained by eligible contract participants and eligible 
     commercial entities.
       ``(IV) Price discovery transactions.--

       ``(aa) In general.--In specifying the information to be 
     provided under this paragraph, the Commission shall identify 
     the transactions or class of transactions that the Commission 
     considers to perform a significant price discovery function.
       ``(bb) Considerations.--In determining which included 
     energy transactions perform a significant price discovery 
     function, the Commission shall consider the extent to which--

       ``(AA) standardized agreements are used to execute the 
     transactions;
       ``(BB) the transactions involve standardized types or 
     measures of a commodity;
       ``(CC) the prices of the transactions are reported to third 
     parties, published, or disseminated;
       ``(DD) the prices of the transactions are referenced in 
     other transactions; and
       ``(EE) other factors considered appropriate by the 
     Commission.
       ``(V) Persons filing.--

       ``(aa) In general.--The Commission, in its discretion, may 
     allow large trader position reports required to be provided 
     by an eligible commercial entity to be provided by an 
     electronic energy trading facility if the eligible commercial 
     entity authorizes the facility to provide such information on 
     its behalf.
       ``(bb) Information and enforcement.--Nothing in an 
     authorization under item (aa) shall impair the ability of the 
     Commission to obtain information from an eligible commercial 
     entity or otherwise enforce this Act.

       ``(VI) Regulations.--Not later than 180 days after the date 
     of enactment of this paragraph, the Commission shall issue a 
     notice of proposed rulemaking, and not later than 1 year 
     after the date of enactment of this paragraph, the Commission 
     shall promulgate final regulations, specifying the 
     information to be provided and maintained under this 
     subparagraph.''.

     SEC. 302. ELECTRONIC TRADING FACILITIES FOR ENERGY 
                   COMMODITIES.

       Section 2(h) of the Commodity Exchange Act (7 U.S.C. 2(h)) 
     is amended--
       (1) in paragraph (1), by inserting after ``an exempt 
     commodity'' the following: ``other than an energy 
     commodity'';
       (2) in paragraph (3), by inserting after ``an exempt 
     commodity'' the following: ``other than an energy 
     commodity''; and
       (3) by adding at the end the following:
       ``(7) Energy transactions.--
       ``(A) In general.--To the extent that the Commission 
     determines to be appropriate under subparagraph (C), an 
     electronic energy trading facility shall--
       ``(i) be subject to the requirements of section 5a, to the 
     extent provided in sections 5a(g) and 5d;
       ``(ii)(I) consistent with section 4i, maintain books and 
     records relating to the business of the electronic energy 
     trading facility, including books and records relating to 
     each transaction in such form as the Commission may require; 
     and
       ``(II) make the books and records required under this 
     section available to representatives of the Commission and 
     the Attorney General for inspection for a period of at least 
     5 years after the date of each included energy transaction;
       ``(iii) make available to the public information on trading 
     volumes, settlement

[[Page S2017]]

     prices, open interest (where applicable), and opening and 
     closing ranges (or daily highs and lows, as appropriate) for 
     included energy transactions; and
       ``(iv) provide the information to the Commission in such 
     form and at such times as the Commission may require.
       ``(B) Applicability of other provisions.--
       ``(i) Paragraph 5.--An electronic energy trading facility 
     shall comply with paragraph (5).
       ``(ii) Paragraph 6.--Paragraph (6) shall apply with respect 
     to a subpoena issued to any foreign person that the 
     Commission believes is conducting or has conducted 
     transactions on or through an electronic energy trading 
     facility.
       ``(C) Regulations.--Not later than 180 days after the date 
     of enactment of this paragraph, the Commission shall issue a 
     notice of proposed rulemaking, and not later than 1 year 
     after the date of enactment of this paragraph, the Commission 
     shall promulgate final regulations, specifying the 
     information to be provided, maintained, or made available to 
     the public under subparagraphs (A) and (B).
       ``(8) Nondisclosure of proprietary information.--In 
     carrying out paragraph (7) and subsection (g)(2), the 
     Commission shall not--
       ``(A) require the real-time publication of proprietary 
     information;
       ``(B) prohibit the commercial sale or licensing of real-
     time proprietary information; or
       ``(C) publicly disclose information regarding market 
     positions, business transactions, trade secrets, or names of 
     customers, except as provided in section 8.''.

     SEC. 303. NO EFFECT ON OTHER AUTHORITY.

       (a) No Effect on FERC Authority.--Nothing contained in this 
     title shall affect the jurisdiction of the Federal Energy 
     Regulatory Commission with respect to the authority of the 
     Federal Energy Regulatory Commission under the Federal Power 
     Act (16 U.S.C. 791a et seq.), the Natural Gas Act (15 U.S.C. 
     717 et seq.), or other law to obtain information or otherwise 
     carry out the responsibilities of the Federal Energy 
     Regulatory Commission.''.
       (b) No Effect on Excluded Commodities.--The amendments made 
     by this title have no effect on the regulation of excluded 
     commodities under the Commodity Exchange Act (7 U.S.C. 1a et 
     seq.).
       (c) No Effect on Metals.--The amendments made by this title 
     have no effect on the regulation of metals under the 
     Commodity Exchange Act (7 U.S.C. 1a et seq.).

     SEC. 304. PROHIBITION OF FRAUDULENT TRANSACTIONS.

       Section 4b of the Commodity Exchange Act (7 U.S.C. 6b) is 
     amended by striking subsection (a) and inserting the 
     following:
       ``(a) Prohibitions.--
       ``(1) In general.--It shall be unlawful (A) for any person, 
     in or in connection with any order to make, or the making of, 
     any contract of sale of any commodity for future delivery or 
     in interstate commerce, that is made, or to be made, on or 
     subject to the rules of a designated contract market, for or 
     on behalf of any other person, or (B) for any person, in or 
     in connection with any order to make, or the making of, any 
     contract of sale of any commodity for future delivery or 
     other agreement, contract or transaction subject to 
     paragraphs (1) and (2) of section 5a(g), that is made, or to 
     be made, for or on behalf of or with, any other person, other 
     than on or subject to the rules of a designated contract 
     market--
       ``(i) to cheat or defraud or attempt to cheat or defraud 
     the other person;
       ``(ii) willfully to make or cause to be made to such other 
     person any false report or statement or willfully to enter or 
     cause to be entered for the other person any false record;
       ``(iii) willfully to deceive or attempt to deceive the 
     other person by any means whatsoever in regard to any order 
     or contract or the disposition or execution of any order or 
     contract, or in regard to any act of agency performed, with 
     respect to any order or contract for (or, in the case of a 
     contract described in subparagraph (B), with the other 
     person); or
       ``(iv)(I) to bucket an order represented by the person as 
     an order to be executed, for or on behalf of the other 
     person, on an organized exchange; or
       ``(II) to--
       ``(aa) fill an order by offset against the order or orders 
     of the other person; or
       ``(bb) willfully and knowingly and without the prior 
     consent of the other person, to--

       ``(AA) become the buyer in respect to any selling order of 
     the other person; or
       ``(BB) become the seller in respect to any buying order of 
     the other person;

     if the order is to be executed on or subject to the rules of 
     a designated contract market.
       ``(2) Limitation.--This subsection does not obligate any 
     person, in connection with a transaction in a contract of 
     sale of a commodity for future delivery with another person, 
     to disclose to any other person nonpublic information that 
     may be material to the market price of the commodity or 
     transaction, except as necessary to make any statement made 
     to the other person in connection with the transaction not 
     misleading in any material respect.''.

     SEC. 305. CRIMINAL AND CIVIL PENALTIES.

       (a) Enforcement Powers of Commission.--Section 6(c) of the 
     Commodity Exchange Act (7 U.S.C. 9, 15) is amended in 
     paragraph (3) of the tenth sentence--
       (1) by inserting ``(A)'' after ``assess such person''; and
       (2) by inserting after ``each such violation'' the 
     following: ``, or (B) in any case of manipulation of, or 
     attempt to manipulate, the price of any commodity, a civil 
     penalty of not more than the greater of $1,000,000 or triple 
     the monetary gain to such person for each such violation,''.
       (b) Manipulations and Other Violations.--Section 6(d) of 
     the Commodity Exchange Act (7 U.S.C. 13b) is amended in the 
     first sentence--
       (1) by striking ``paragraph (a) or (b) of section 9 of this 
     Act'' and inserting ``subsection (a), (b), or (f) of section 
     9''; and
       (2) by striking ``said paragraph 9(a) or 9(b)'' and 
     inserting ``subsection (a), (b), or (f) of section 9''.
       (c) Nonenforcement of Rules of Government or Other 
     Violations.--Section 6b of the Commodity Exchange Act (7 
     U.S.C. 13a) is amended--
       (1) in the first sentence, by inserting before the period 
     at the end the following: ``, or, in any case of manipulation 
     of, or an attempt to manipulate, the price of any commodity, 
     a civil penalty of not more than $1,000,000 for each such 
     violation''; and
       (2) in the second sentence, by inserting before the period 
     at the end the following: ``, except that if the failure or 
     refusal to obey or comply with the order involved any offense 
     under section 9(f), the registered entity, director, officer, 
     agent, or employee shall be guilty of a felony and, on 
     conviction, shall be subject to penalties under section 
     9(f)''.
       (d) Action To Enjoin or Restrain Violations.--Section 6c(d) 
     of the Commodity Exchange Act (7 U.S.C. 13a-1(d)) is amended 
     by striking ``(d)'' and all that follows through the end of 
     paragraph (1) and inserting the following:
       ``(d) Civil Penalties.--In any action brought under this 
     section, the Commission may seek and the court shall have 
     jurisdiction to impose, on a proper showing, on any person 
     found in the action to have committed any violation--
       ``(1) a civil penalty in the amount of not more than the 
     greater of $100,000 or triple the monetary gain to the person 
     for each violation; or
       ``(2) in any case of manipulation of, or an attempt to 
     manipulate, the price of any commodity, a civil penalty in 
     the amount of not more than the greater of $1,000,000 or 
     triple the monetary gain to the person for each violation.''.
       (e) Violations Generally.--Section 9(a) of the Commodity 
     Exchange Act (7 U.S.C. 13) is amended--
       (1) by striking ``(or $500,000 in the case of a person who 
     is an individual)'';
       (2) by striking ``five years'' and inserting ``10 years''; 
     and
       (3) in paragraph (2), by striking ``false or misleading or 
     knowingly inaccurate reports'' and inserting ``knowingly 
     false, misleading, or inaccurate reports''.

     SEC. 306. CONFORMING AMENDMENTS.

       (a) Section 2 of the Commodity Exchange Act (7 U.S.C. 2) is 
     amended--
       (1) in subsection (d)(1), by striking ``section 5b'' and 
     inserting ``section 5a(g), 5b,'';
       (2) in subsection (e)(1), by inserting ``(1)'' after 
     ``(g)''; and
       (3) in subsection (i)--
       (A) in paragraph (1)--
       (i) by striking ``No provision'' and inserting ``In 
     general.--Subject to subsections (g)(2) and (h)(7), no 
     provision''; and
       (ii) in subparagraph (A), by inserting ``(1)'' after 
     ``2(g)''; and
       (B) in paragraph (2), by striking ``No provision'' and 
     inserting ``In general.--Subject to subsections (g)(2) and 
     (h)(7), no provision''.
       (b) Section 4i of the Commodity Exchange Act (7 U.S.C. 6i) 
     is amended in the first sentence by inserting ``, or pursuant 
     to an exemption under section 4(c)'' after ``transaction 
     execution facility''.
       (c) Section 8a(9) of the Commodity Exchange Act (7 U.S.C. 
     12a(9)) is amended--
       (1) by inserting ``or an electronic energy trading 
     facility'' after ``direct the contract market'';
       (2) by inserting after ``liquidation of any futures 
     contract'' the following: ``or included energy transaction''; 
     and
       (3) by inserting ``or an electronic energy trading 
     facility'' after ``given by a contract market''.
                                 ______
                                 
      By Mr. WYDEN (for himself and Mr. Talent):
  S. 510. A bill to reduce and eliminate electronic waste through 
recycling; to the Committee on France.
  Mr. WYDEN. Mr. President, the pace of technological innovation offers 
American consumers an eye-catching array of electronic gadgets. But for 
every new lap top or HDTV that goes home from the store with a 
consumer, an old computer or TV gets moved to the garage or shoved into 
the back of a closet. What to do with the growing amount of trash from 
the digital economy is a question that Senator Talent and I believe 
must be addressed before our landfills are full and foreign countries 
close their ports to ships loaded down with old US computers. Today we 
are introducing bipartisan legislation to jumpstart a nationwide 
electronic waste recycling initiative.
  When I was a member of the Commerce Committee, I helped write the

[[Page S2018]]

ground rules for the digital economy. My goal was to help create a 
climate that would spur the development of technology so it would 
become accessible and affordable to all Americans. This approach seems 
to be working. One measure of the success of the digital economy is the 
sheer number of computers and electronic gadgets that Americans own. 
Americans now spend more than $130 billion a year on electronics, from 
computers to HDTVs.
  The boom in consumer spending on electronics and the growth in the 
digital economy are not without a downside. In one year alone, some 60 
million computers and 20 million television sets become obsolete and 
more than 500 million computers will be discarded in the decade ending 
in 2007. These obsolete computers alone will result in over 6.3 billion 
pounds of plastic and 1.6 billion pounds of lead in our landfills or 
incinerators.
  Electronic waste, or e-waste, is not even a blip on the radar screen 
of most policymakers. There have been a few news articles here and 
there, but so far they've been buried, well behind page one. I want to 
tackle the problem of e-waste in the same way we went about solving the 
Y-2K problem: putting policies in place to help all stakeholders deal 
with it before it overtakes us.
  Some communities across the country have begun to talk about how to 
deal with the accumulation of electronic waste. A few States, like 
California and Maine, recently passed laws to get recycling programs 
going. Several other States, including my own State of Oregon, will 
likely consider legislation this year. Among the options, some States 
favor an upfront fee, tacked onto the price of electronics, intended to 
help pay for the cost of recycling, others are looking at end-of-life 
fees. No one yet has looked at the approach Senator Talent and I are 
proposing.
  My own sense is that slapping a fee on consumers for the purchase of 
a new computer or television is not necessarily the best way to 
encourage them to drag those old 80-pound computers and TVs out of the 
basement and get them to a recycling facility. Someone who needs a new 
one may just pay the fee but leave their old computers and TVs at home. 
End-of-life fees mean that today's manufacturers and retailers end up 
paying for e-trash left over from manufacturers that have gone out of 
business or from off-shore companies.
  The bipartisan legislation Senator Talent and I are introducing 
today, The Electronic Waste Recycling Promotion and Consumer Protection 
Act, takes a novel approach to the problem.
  First, to get consumers motivated to move their old computers or 
televisions out of the garage and to a recycling facility, the bill 
would give them a one-time tax credit based on showing they gave their 
old computers or televisions to a qualified recycler.
  Second, to build up the recycling infrastructure nationwide, the 
legislation would give manufacturers, retailers and qualified recyclers 
tax credits over a 3-year period, based on showing that they had 
recycled a certain amount of e-waste each year and done it in a way 
that is safe and environmentally sound.
  Third, the bill would give the Environmental Protection Agency a year 
to come up with options for a nationwide e-waste recycling program that 
would, if approved by Congress, preempt State plans. Manufacturers, 
retailers and recyclers are going to find it increasingly difficult to 
deal with a crazy quilt of 50 different State e-waste recycling laws.
  These are the incentives, but incentives without teeth won't work. So 
at the end of 3 years of tax credits, if EPA determines that there are 
enough recyclers in place, no one who operates a municipal solid waste 
facility could knowingly accept any computer, computer monitor or 
television unless the e-waste is to be recycled.
  The bill would also ask EPA to consider the benefits of requiring 
manufacturers who sell computers and TVs to take them back for 
recycling. And, to make sure we're keeping our own house in order, the 
legislation would require the federal government to properly recycle 
its computers.
  The goal here is to provide incentives to build a nationwide e-waste 
recycling infrastructure. EPA estimates that electronic waste already 
constitutes 40 percent of the lead and 70 percent of the heavy metals 
found in landfills today. If this waste is not handled properly, there 
is a real risk that toxins from the lead, mercury and cadmium will 
leach into the air, soil and water. The health effects of these toxins 
are well known and include an increased risk of cancer as well as harm 
to kidneys, the brain and the nervous system.
  As one who has worked so hard to foster the digital economy, I 
believe there is also a duty to assure that e-waste is handled 
responsibly. Consumers need to know that potentially harmful e-waste is 
being handled properly and I can't find a reason to add millions of 
tons of new toxic waste to our environment.
  I also believe that the United States, as the leading innovator and 
consumer of electronic products in the world, has a duty to deal with 
e-waste responsibly. Sending shiploads full of e-junk that contains 
harmful lead, mercury and cadmium to poor countries overseas is not my 
idea of responsible.
  Senator Talent and I have worked with a group of folks that normally 
don't see eye to eye on such issues. Through many hours of negotiation 
they have helped us produce a bill that represents a solid first step 
toward solving this problem. I am pleased that we have support for the 
approach taken in our legislation from environmental groups and 
industry groups, ranging from manufacturers like HP and Intel to 
retailers and solid waste recyclers, like Waste Management. We are 
committed to continuing to work with them to move the legislation 
through Congress.
  In closing, electronic waste is not going away. It's time to put 
bipartisan policies in place that will jumpstart the creation of a 
nationwide e-waste recycling infrastructure so that consumers have 
access to recycling facilities and get in the habit of recycling these 
items. I've talked to manufacturers, retailers, recyclers, 
environmental and consumer groups and they tell me that this issue must 
be addressed now by a national rather than state-by-state approach. 
This bill is a common-sense, first step that will help us get a handle 
on the growing problem of electronic waste.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 510

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Electronic Waste Recycling 
     Promotion and Consumer Protection Act''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) the National Safety Council estimates that--
       (A) in 2003, over 60,000,000 personal computers became 
     obsolete and between 1997 and 2007 more than 500,000,000 
     computers will need to be discarded; and
       (B) at an average weight of 70 pounds, this will result in 
     over 6,300,000,000 pounds of plastic and 1,600,000,000 pounds 
     of lead added to the supply of waste needing to be managed;
       (2) according to the Environmental Protection Agency--
       (A) a computer monitor or television set generally contains 
     4 to 8 pounds of lead;
       (B) mercury, cadmium, and other heavy metals are generally 
     used in such equipment as well; and
       (C) households and businesses in the United States often do 
     not discard older computers and televisions when buying newer 
     versions of the same products;
       (3) according to experts, the average household may have 
     between 2 and 3 older computers and televisions in storage, 
     and approximately 20,000,000 to 24,000,000 computers and 
     televisions are placed in storage each year;
       (4) according to the Environmental Protection Agency, 
     discarded computer, television, and other electronic 
     equipment--
       (A) when not discarded in large quantities, is currently 
     managed in most States as municipal solid waste, just like 
     ordinary trash; and
       (B) constitute 40 percent of the lead and 70 percent of the 
     heavy metals that are found in landfills and, if not handled 
     properly, can be released into the environment, contaminating 
     air and groundwater and posing a significant threat to human 
     health, including potential damage to kidney, brain, and 
     nervous system function, and cancer in cases of excessive 
     exposure;
       (5) materials used in computers, televisions, and similar 
     electronic products can be recovered through recycling, which 
     conserves resources and minimizes the potentially harmful 
     human and environmental health effects of those materials; 
     and

[[Page S2019]]

       (6) establishing a nationwide infrastructure for electronic 
     waste recycling will--
       (A) facilitate access of people in the United States to 
     recycling services; and
       (B) improve the efficiency and use of electronic waste 
     recycling.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Environmental Protection Agency.
       (2) Cathode ray tube.--The term ``cathode ray tube'' means 
     a vacuum tube used to convert an electronic signal into a 
     visual image, for use in a computer monitor, television, or 
     other piece of electronic equipment.
       (3) Computer.--
       (A) In general.--The term ``computer'' means an electronic, 
     magnetic, optical, electrochemical, or other high speed data 
     processing device that performs logical, arithmetic, or 
     storage functions.
       (B) Exclusions.--The term ``computer'' does not include an 
     automated typewriter or typesetter, video game console, 
     portable hand held calculator, personal digital assistant, 
     cellular telephone, or other similar device.
       (4) Consumer.--The term ``consumer'' means--
       (A) an occupant of a single, detached dwelling unit or a 
     single unit of a multiple dwelling unit who--
       (i) has used a computer monitor, a television, or another 
     piece of electronic equipment that contains a display screen 
     or a system unit; and
       (ii) used the equipment described in subparagraph (A) at 
     the dwelling unit of the occupant; and
       (B) a commercial, educational, or other entity that 
     discarded for recycling not more than 20 display screens or 
     system units per year during the previous 5 years.
       (5) Display screen--
       (A) In general.--The term ``display screen'' means a 
     cathode ray tube, flat panel screen, or other similar video 
     display device with a screen size of greater than 4 inches, 
     measured diagonally.
       (B) Exclusion.--The term ``display screen'' does not 
     include commercial or industrial equipment, or household 
     appliances, that contain--
       (i) a cathode ray tube;
       (ii) a flat panel screen; or
       (iii) another similar video device.
       (6) Hazardous waste.--The term ``hazardous waste'' has the 
     meaning given the term in section 1004 of the Solid Waste 
     Disposal Act (42 U.S.C. 6903).
       (7) Recycle--The term ``recycle'' means the performance of 
     a process by 1 or more persons by which a display screen or a 
     system unit is--
       (A) sorted;
       (B) if necessary, transported;
       (C) to the maximum extent practicable, separated to recover 
     any component or commodity inside the display screen or 
     system unit that can be reduced to raw materials or products; 
     and
       (D) treated such that any remaining material is disposed of 
     properly and in an environmentally sound manner consistent 
     with the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.).
       (8) System unit.--The term ``system unit'' means--
       (A) the casing or portion of a computer that contains the 
     central processing unit, which performs the primary quantity 
     of data processing; and
       (B) the unit that, together with the memory, forms the 
     central part of the computer, to which peripheral devices may 
     be attached.
       (9) Universal waste.--The term ``universal waste'' has the 
     meaning given the term in the Environmental Protection Agency 
     Standards of Universal Waste Management established under 
     section 273 of title 40, Code of Federal Regulations (and 
     successor regulations).

     SEC. 4. CREDIT FOR RECYCLING ELECTRONIC WASTE.

       (a) In General.--Subpart B of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new section:

     ``SEC. 30B. CREDIT FOR RECYCLING ELECTRONIC WASTE.

       ``(a) Allowance of Credit.--In the case of an eligible 
     taxpayer, there shall be allowed as a credit against the tax 
     imposed by this chapter for the taxable year an amount equal 
     to $8 per unit of qualified electronic waste that is 
     collected from consumers and recycled.
       ``(b) Eligible Taxpayer.--For purposes of this section, the 
     term `eligible taxpayer' means any person which--
       ``(1) collects from consumers and recycles, or arranges for 
     the recycling of, not less than 5,000 units of qualified 
     electronic waste during that person's taxable year,
       ``(2) submits with the person's tax return documentation of 
     the final destination of all units of electronic waste 
     collected from consumers during the person's taxable year for 
     the purpose of recycling, and
       ``(3) certifies that all reclamation and recycling carried 
     out by the person was performed by an eligible recycler.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Qualified electronic waste.--The term `qualified 
     electronic waste' means any display screen or any system 
     unit.
       ``(2) Consumer, display screen; recycle; system unit.--The 
     terms `consumer', `display screen', `recycle', and `system 
     unit' have the meaning given the terms by section 3 of the 
     Electronic Waste Recycling Promotion and Consumer Protection 
     Act.
       ``(d) Disallowance of credit.--No credit shall be allowed 
     under this section for recycling a unit of qualified 
     electronic waste which is collected from a consumer in a 
     State which has adopted and implemented a statewide program 
     in accordance with State law which mandates or provides 
     incentives for recycling electronic waste, including a 
     mandatory per-unit, upfront charge to consumers for the 
     purpose of recycling electronic waste.
       ``(e) Final regulations.--
       ``(1) In general.--Not later than the date which is 180 
     days after the date of the enactment of this section, the 
     Secretary, after consultation with the Administrator of the 
     Environmental Protection Agency, shall issue such final 
     regulations as may be necessary and appropriate to carry out 
     this section.
       ``(2) Inclusion.--
       ``(A) In general.--Subject to subparagraph (B), the 
     regulations issued under paragraph (1) shall include--
       ``(i) requirements for certifying recyclers as eligible to 
     recycle qualified electronic waste,
       ``(ii) requirements to ensure that all recycling of 
     qualified electronic waste is performed in a manner that is 
     safe and environmentally sound, and
       ``(iii) a provision which allows a tax credit under this 
     section to be shared by 2 or more eligible taxpayers, 
     provided that the total tax credit for a unit of electronic 
     waste under this section does not exceed $8.
       ``(B) Limitation.--The Secretary shall not certify a 
     recycler as eligible under this subsection unless the 
     recycler is--
       ``(i) a taxpayer, or
       ``(ii) a State or local government.
       ``(f) Termination.--This section shall not apply with 
     respect to any unit of qualified electronic waste which is 
     recycled after the date which is 3 years after the date on 
     which the final regulations issued pursuant to subparagraph 
     (e) take effect.''.
       (b) Conforming Amendment.--The table of sections for 
     subpart B of part IV of subchapter A of chapter 1 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new item:

``Sec. 30B. Credit for recycling electronic waste.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to display screens and system units 
     recycled after the date on which the final regulations issued 
     pursuant to section 30B of subpart B of part IV of subchapter 
     A of chapter 1 of the Internal Revenue Code of 1986 (as added 
     by this section) take effect.

     SEC. 5. CONSUMER CREDIT FOR RECYCLING ELECTRONIC WASTE.

       (a) In General.--Subpart A of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     inserting after section 25B the following new section:

     ``SEC. 25C. CONSUMER CREDIT FOR RECYCLING ELECTRONIC WASTE.

       ``(a) Allowance of Credit.--In the case of an eligible 
     consumer, there shall be allowed as a credit against the tax 
     imposed by this chapter for the taxable year an amount equal 
     to $15 for the recycling of 1 or more units of qualified 
     electronic waste.
       ``(b) Eligible Consumer.--For purposes of this section, the 
     term `eligible consumer' means any individual--
       ``(1) with respect to whom a credit under this section has 
     not been allowed in any preceding taxable year, and
       ``(2) who submits with the individual's tax return such 
     information as the Secretary requires to document that each 
     unit of qualified electronic waste was recycled by a recycler 
     certified by the Secretary pursuant to subsection (d).
       ``(c) Definitions.--For purposes of this section--
       ``(1) Qualified electronic waste.--The term `qualified 
     electronic waste' means any display screen or any system 
     unit.
       ``(2) Consumer, display screen; recycle; system unit.--The 
     terms `consumer', `display screen', `recycle', and `system 
     unit' have the meaning given the terms by section 3 of the 
     Electronic Waste Recycling Promotion and Consumer Protection 
     Act.
       ``(d) Final regulations.--
       ``(1) In general.--Not later than the date which is 180 
     days after the date of the enactment of this section, the 
     Secretary, after consultation with the Administrator of the 
     Environmental Protection Agency, shall issue such final 
     regulations as may be necessary and appropriate to carry out 
     this section.
       ``(2) Inclusion.--
       ``(A) In general.--Subject to subparagraph (B), the 
     regulations issued under paragraph (1) shall include--
       ``(i) requirements for certifying recyclers as eligible to 
     recycle qualified electronic waste, and
       ``(ii) requirements to ensure that all recycling of 
     qualified electronic waste is performed in a manner that is 
     safe and environmentally sound.
       ``(B) Limitation.--The Secretary shall not certify a 
     recycler as eligible under this subsection unless the 
     recycler is--
       ``(i) a taxpayer, or
       ``(ii) a State or local government.
       ``(e) Termination.--This section shall not apply with 
     respect to any unit of qualified electronic waste which is 
     recycled after the date which is 3 years after the date on 
     which

[[Page S2020]]

     the final regulations issued pursuant to subsection (d) take 
     effect.''.
       (b) Conforming Amendments.--
       (1) Section 26(a)(1) of the Internal Revenue Code of 1986 
     is amended by striking ``and 25B'' and inserting ``25B, and 
     25C''.
       (2) The table of sections for subpart A of part IV of 
     subchapter A of chapter 1 of such Code is amended by 
     inserting after the item relating to section 25B the 
     following new item:

``Sec. 25C. Consumer credit for recycling electronic waste.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to display screens and system units 
     recycled after the date on which the final regulations issued 
     pursuant to section 30B of subpart A of part IV of subchapter 
     A of chapter 1 of the Internal Revenue Code of 1986 (as added 
     by this section) take effect.

     SEC. 6. PROHIBITIONS OF DISPOSAL WITHOUT RECYCLING.

       (a) Display Screen and System Unit Disposal Ban.--
       (1) In general.--Effective beginning on the date that is 3 
     years after the date of enactment of this Act, if the 
     Administrator determines that a majority of households in the 
     United States have sufficient access to a recycling service 
     for display screens and system units, it shall be unlawful 
     for the operator of a landfill, incinerator, or any other 
     facility for the transfer, disposal, or storage of municipal 
     solid waste to knowingly receive from a consumer a display 
     screen or system unit, except for the purpose of recycling or 
     arranging for the recycling of the display screen or system 
     unit by a recycler certified as an eligible recycler by the 
     Administrator.
       (2) Procedures.--Not later than 180 days after the date of 
     enactment of this Act, the Administrator shall develop and 
     issue guidelines covering waste handlers and waste transfer 
     stations to assist in developing recycling procedures for 
     display screens and system units.
       (3) Exemptions.--As part of the guidelines issued pursuant 
     to paragraph (2), the Administrator shall classify display 
     screens and system units as universal waste and provide for 
     the exemption of display screens and system units from the 
     requirements of the Solid Waste Disposal Act (42 U.S.C. 6901 
     et seq.) as necessary to facilitate the collection, storage, 
     and transportation of display screens and system units for 
     the purpose of recycling.
       (b) Enforcement.--A violation of subsection (a) by any 
     person or entity shall be subject to enforcement under 
     applicable provisions of the Solid Waste Disposal Act (42 
     U.S.C. 6901 et seq.).

     SEC. 7. RECYCLING OF DISPLAY SCREENS AND SYSTEM UNITS 
                   PROCURED BY THE FEDERAL GOVERNMENT.

       (a) Definition of executive agency.--In this section, the 
     term ``executive agency'' has the meaning given the term in 
     section 11101 of title 40, United States Code.
       (b) Requirement for recycling.--The head of each executive 
     agency shall ensure that each display screen and system unit 
     procured by the Federal Government--
       (1) is recovered upon the termination of the need of the 
     Federal Government for the display screen or system unit; and
       (2) is recycled by a recycler certified as an eligible 
     recycler by the Administrator through--
       (A) a program established after the date of enactment of 
     this Act by the executive agency, either alone or in 
     conjunction with 1 or more other executive agencies; or
       (B) any other program for recycling or reusing display 
     screens and system units.

     SEC. 8. NATIONWIDE RECYCLING PROGRAM.

       (a) Study.--
       (1) In general.--The Administrator, in consultation with 
     appropriate executive agencies (as determined by the 
     Administrator), shall conduct a study of the feasibility of 
     establishing a nationwide recycling program for electronic 
     waste that preempts any State recycling program.
       (2) Inclusions.--The study shall include an analysis of 
     multiple programs, including programs involving--
       (A) the collection of an advanced recycling fee;
       (B) the collection of an end-of-life fee;
       (C) producers of electronics assuming the responsibility 
     and the cost of recycling electronic waste; and
       (D) the extension of a tax credit for recycling electronic 
     waste.
       (b) Report.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall submit to 
     Congress a report describing--
       (1) the results of the study conducted under subsection 
     (a);
       (2) 1 or more prospective nationwide recycling programs, 
     including--
       (A) a cost-benefit analysis of each program, including--
       (i) the cost of the program to--

       (I) consumers;
       (II) manufacturers;
       (III) retailers; and
       (IV) recyclers; and

       (ii) the estimated overhead and administrative expenses of 
     carrying out and monitoring the program; and
       (B) the quantity of display screens and system units 
     projected to be recycled under the program;
       (3)(A) the benefits of establishing a nationwide take-back 
     provision that would require, as part of the program, all 
     manufacturers of display screens or system units for sale in 
     the United States to collect and recycle, or arrange for the 
     recycling of, display screens and system units; and
       (B) a projection of the quantity of display screens and 
     system units that would be recycled annually under a 
     nationwide take-back provision;
       (4)(A) any emerging electronic waste streams, such as--
       (i) cellular telephones; and
       (ii) personal digital assistants; and
       (B) a cost-benefit analysis of including an emerging 
     electronic waste stream in a national recycling program; and
       (5) the progress of the Administrator in carrying out 
     section 6, including--
       (A) information on enforcement of the prohibition; and
       (B) any increase in recycling as a result of the 
     prohibition.
                                 ______
                                 
      By Mr. DeMINT (for himself, Mr. Allen, Mr. Brownback, Mr. Coburn, 
        Mr. Ensign, Mr. Enzi, Mr. Inhofe, Mr. Santorum, and Mr. 
        Vitter):
  S. 511. A bill to provide that the approved application under the 
Federal Food, Drug, and Cosmetic Act for the drug commonly known as RU-
486 is deemed to have been withdrawn, to provide for the review by the 
Comptroller General of the United States of the process by which the 
Food and Drug Administration approved such drug, and for other 
purposes; to the Committee on Health, Education, Labor, and Pensions.
  Mr. DeMINT. Mr. President, I rise today to reintroduce ``Holly's 
Law,'' a bill that would suspend FDA's approval of RU-486 and direct 
the GAO to conduct an independent review of the process used by the FDA 
to approve the drug.
  Holly's Law is named in memory of Holly Patterson, an 18-year old 
woman who died after taking the drug in 2003. RU-486 has killed three 
women in the United States and many more have been hospitalized with a 
severe bacterial infection known as septic shock.
  RU-486 was approved by the FDA in September of 2000. The FDA approved 
RU-486 under a special ``restricted distribution'' approval process 
known as ``Subpart H,'' reserved only for drugs that treat ``severe or 
life-threatening illnesses,'' like cancer and AIDS.
  Subpart H allows an expedited approval of certain drugs by not 
subjecting them to the testing and review standards required of all 
other new drugs. These are important tests necessary to determine the 
safety and long-term effects of a drug. Clearly, the fact that these 
tests were not done on RU-486 was a damaging omission considering the 
death and illness associated with use of the drug.
  Due to the serious threat RU-486 poses to women's health, we are 
asking that Congress suspend FDA's approval of RU-486 until the GAO can 
provide a report on whether RU-486 should have been deemed ``safe and 
effective'' by the FDA.
  I am grateful to Senators Allen, Brownback, Coburn, Ensign, Enzi, 
Inhofe, Santorum and Vitter who have joined me as original cosponsors 
of this bill. They understand that RU-486 is a dangerous drug that 
cannot remain on the market while more women die. I urge my colleagues 
to support Holly's Law to take RU-486 off the market before more women 
are harmed by it.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 511

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``RU-486 Suspension and Review 
     Act of 2005''.

     SEC. 2. FINDING.

       Congress finds that the use of the drug mifepristone 
     (marketed as Mifeprex, and commonly known as RU-486) in 
     conjunction with the off-label use of misoprostol to 
     chemically induce abortion has caused a significant number of 
     deaths, near deaths, and adverse reactions.

     SEC. 3. SUSPENSION OF APPROVAL OF DRUG COMMONLY KNOWN AS RU-
                   486; REVIEW AND REPORT BY GOVERNMENT 
                   ACCOUNTABILITY OFFICE.

       (a) In General.--Effective on the date that is 15 days 
     after the date of the enactment of this Act:
       (1) The approved application under section 505(b) of the 
     Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(b)) for 
     the drug mifepristone (marketed as Mifeprex, and

[[Page S2021]]

     commonly known as RU-486) is deemed to have been withdrawn 
     under section 505(e) of such Act (21 U.S.C. 355(e)).
       (2) For purposes of sections 301(d) and 304 of such Act (21 
     U.S.C. 331(d) and 334), the introduction or delivery for 
     introduction of such drug into interstate commerce shall be 
     considered a violation of section 505 of such Act.
       (3) The drug misoprostol shall be considered misbranded for 
     purposes of sections 301 and 304 of such Act if the drug 
     bears labeling providing that the drug may be used for the 
     medical termination of intrauterine pregnancy or that the 
     drug may be used in conjunction with another drug for the 
     medical termination of intrauterine pregnancy.
       (b) Review and Report by Government Accountability 
     Office.--
       (1) In general.--The Comptroller General of the United 
     States shall review the process by which the Food and Drug 
     Administration approved mifepristone under section 505 of the 
     Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355) and 
     shall determine whether such approval was provided in 
     accordance with such section. The Secretary of Health and 
     Human Services shall ensure that the Comptroller General has 
     full access to all information possessed by the Department of 
     Health and Human Services that relates to such process.
       (2) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Comptroller General of the United 
     States shall complete the review under paragraph (1) and 
     submit to Congress and the Secretary of Health and Human 
     Services a report that provides the findings of the review.
       (c) Contingent Reinstatement of Approval of Drug.--If the 
     report under subsection (b) includes a determination by the 
     Comptroller General of the United States that the approval by 
     the Food and Drug Administration of mifepristone was provided 
     in accordance with section 505 of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 355), the Secretary of Health and 
     Human Services shall publish such statement in the Federal 
     Register. Effective upon the expiration of 30 days after such 
     publication, subsection (a) shall cease to have any legal 
     effect.
                                 ______
                                 
      By Mr. SANTORUM (for himself, Mr. Rockefeller, and Mr. Reed):
  S. 512. A bill to amend the Internal Revenue Code of 1986 to classify 
automatic fire sprinkler systems as 5-year property for purposes of 
depreciation; to the Committee on Finance.
  Mr. SANTORUM. I rise today to introduce with Senator Rockefeller the 
bipartisan Fire Sprinkler Incentive Act of 2005. Passage of this Act 
would serve greatly to help reduce the tremendous annual economic and 
human losses that fire in the United States inflicts on the national 
economy and quality of life.
  In the United States, fire departments responded to approximately 1.7 
million fires in 2002. Annually, over 500,000 of these are structural 
fires causing approximately 3,400 deaths, around 100 of which are 
firefighters. Fire also caused some 18.5 million civilian injuries and 
$10.3 billion in direct property loss. The indirect cost of fire in the 
United States annually exceeds $80 billion. These losses are 
staggering. All of this translates to the fact that fire departments 
respond to a fire every 18 seconds. Every 60 seconds a fire breaks out 
in a structure, and in a residential structure every 80 seconds.
  There are literally thousands of high-rise buildings built under 
older codes that lack adequate fire protection. Billions of dollars 
were spent to make these and other buildings handicapped accessible, 
but people with disabilities now occupying these buildings are not 
adequately protected from fire. At recent code hearings, 
representatives of the health care industry testified that there are 
approximately 4,200 nursing homes that need to be retrofitted with fire 
sprinklers. They further testified that the billion dollar cost of 
protecting these buildings with fire sprinklers would have to be raised 
through corresponding increases in Medicare and Medicaid. In addition 
to the alarming number of nursing homes lacking fire sprinkler 
protection, there are literally thousands of assisted living facilities 
housing older Americans and people with disabilities that lack fire 
sprinkler protection.
  The solution resides in automatic sprinkler systems that are usually 
triggered within 4 minutes of ignition when the temperature rises above 
120 degrees. The National Fire Protection Association (NFPA) has no 
record of a fire killing more than two people in a public assembly, 
educational, institutional, or residential building that has fully 
operational sprinklers. Furthermore, sprinklers are responsible for 
dramatically reducing property loss, from as low as 42 percent to as 
high as 70 percent depending on the structure.
  Building owners do not argue with fire authorities over the logic of 
protecting their building with fire sprinklers. The issue is cost. This 
bill would drastically reduce the staggering annual economic toll of 
fire in America and thereby dramatically improve the quality of live 
for everyone involved. This legislation provides a tax incentive for 
businesses to install sprinklers through the use of a 5-year 
depreciation period, opposed to the current 27.5 or 39-year period for 
installations in residential rental and non-residential real property 
respectively. While only a start, the bill will help eliminate the 
massive losses seen in nursing homes, nightclubs, office buildings, 
apartment buildings, manufacturing facilities, and other for-profit 
entities.
  This bill enjoys support from a variety of organizations. They 
include: the American Insurance Association, the American Fire 
Sprinkler Association, the California Department of Forestry and Fire 
Protection, Campus Firewatch, Congressional Fire Services Institute, 
Independent Insurance Agents & Brokers of America, International 
Association of Arson Investigators, International Association of Fire 
Chiefs, International Fire Service Training Association, National Fire 
Protection Association, National Fire Sprinkler Association, National 
Volunteer Fire Council, the Society of Fire Protection Engineers, and 
the Mechanical Contractors Asociation of America.
  The Fire Sprinkler Incentive Act of 2005 provides long-needed safety 
incentives for building owners that will help fire departments across 
the country save lives. I ask my colleagues for their support of this 
important piece of legislation.
                                 ______
                                 
      By Mr. GREGG (for himself, Mr. Kennedy, Ms. Mikulski, Mr. Harkin, 
        Mr. Bingaman, Mr. Reed, Mrs. Murray, Mrs. Lincoln, Mr. Kerry, 
        and Mr. Durbin):
  S. 513. A bill to provide collective bargaining rights for public 
safety officers employed by States or their political subdivisions; to 
the Committee on Health, Education, Labor, and Pensions.
  Mr. GREGG. Mr. President, today I am pleased to be joined by Senators 
Kennedy, Mikulski, Harkin, Bingaman, Reed, Murray, Lincoln, Kerry and 
Durbin in introducing the Public Safety Employer-Employee Cooperation 
Act of 2005. This legislation would extend to firefighters and police 
officers the right to discuss workplace issues with their employers.
  With the enactment of the Congressional Accountability Act, State and 
local government employees remain the only sizable segment of workers 
left in America who do not have the basic right to enter into 
collective bargaining agreements with their employers. While most 
States do provide some collective bargaining rights for their public 
employees, others do not.
  Studies have shown that communities which promote such cooperation 
enjoy much more effective and efficient delivery of emergency services. 
Such cooperation, however, is not possible in the States that do not 
provide public safety employees with the fundamental right to bargain 
with their employers.
  The legislation I am introducing today is balanced in its recognition 
of the unique situation and obligation of public safety officers. The 
bill requires States, within 2 years, to guarantee the right of public 
safety officers to form and voluntarily join a union to bargain 
collectively over hours, wages and conditions of employment. The bill 
protects the right of public safety officers to form, join, or assist 
any labor organization or to refrain from any such activity, freely and 
without fear of penalty or reprisal. In addition, the legislation 
prohibits the use of strikes, lockouts, sickouts, work slowdowns or any 
other action that is designed to compel an employer, officer or labor 
organization to agree to the terms of a proposed contract and that will 
measurably disrupt the delivery of services.
  Under this legislation, States would continue to be able to enforce 
right-to-work laws which prohibit employers and labor organizations 
from negotiating labor agreements that require union membership or 
payment of union fees as a condition of employment. The legislation 
also preserves the right of

[[Page S2022]]

management to not bargain over issues traditionally reserved for 
management-level decisions. All States with a State bargaining law for 
public safety officers that grants rights equal to or greater than the 
rights provided under this bill would be exempt. The bill also gives 
States the option to exempt from coverage subdivisions with populations 
of less than 5,000 or fewer than 25 full time employees.
  Labor-management partnerships, which are built upon bargaining 
relationships, result in improved public safety. Employer-employee 
cooperation contains the promise of saving the taxpayer money by 
enabling workers to offer input as to the most efficient way to provide 
services. In fact, studies have shown that States that give 
firefighters the right to discuss workplace issues actually have lower 
fire department budgets than States without those laws.
  The Public Safety Employer-Employee Cooperation Act of 2005 will put 
firefighters and law enforcement officers on equal footing with other 
employees and provide them with the fundamental right to negotiate with 
employers over such basic issues as hours, wages, and workplace 
conditions.
  I urge its adoption and ask unanimous consent that the text of this 
bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 513

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Public Safety Employer-
     Employee Cooperation Act of 2005''.

     SEC. 2. DECLARATION OF PURPOSE AND POLICY.

       The Congress declares that the following is the policy of 
     the United States:
       (1) Labor-management relationships and partnerships are 
     based on trust, mutual respect, open communication, bilateral 
     consensual problem solving, and shared accountability. Labor-
     management cooperation fully utilizes the strengths of both 
     parties to best serve the interests of the public, operating 
     as a team, to carry out the public safety mission in a 
     quality work environment. In many public safety agencies it 
     is the union that provides the institutional stability as 
     elected leaders and appointees come and go.
       (2) The Federal Government needs to encourage conciliation, 
     mediation, and voluntary arbitration to aid and encourage 
     employers and their employees to reach and maintain 
     agreements concerning rates of pay, hours, and working 
     conditions, and to make all reasonable efforts through 
     negotiations to settle their differences by mutual agreement 
     reached through collective bargaining or by such methods as 
     may be provided for in any applicable agreement for the 
     settlement of disputes.
       (3) The absence of adequate cooperation between public 
     safety employers and employees has implications for the 
     security of employees and can affect interstate and 
     intrastate commerce. The lack of such labor-management 
     cooperation can detrimentally impact the upgrading of police 
     and fire services of local communities, the health and well-
     being of public safety officers, and the morale of the fire 
     and police departments. Additionally, these factors could 
     have significant commercial repercussions. Moreover, 
     providing minimal standards for collective bargaining 
     negotiations in the public safety sector can prevent 
     industrial strife between labor and management that 
     interferes with the normal flow of commerce.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Authority.--The term ``Authority'' means the Federal 
     Labor Relations Authority.
       (2) Emergency medical services personnel.--The term 
     ``emergency medical services personnel'' means an individual 
     who provides out-of-hospital emergency medical care, 
     including an emergency medical technician, paramedic, or 
     first responder.
       (3) Employer; public safety agency.--The terms ``employer'' 
     and ``public safety agency'' mean any State, political 
     subdivision of a State, the District of Columbia, or any 
     territory or possession of the United States that employs 
     public safety officers.
       (4) Firefighter.--The term ``firefighter'' has the meaning 
     given the term ``employee engaged in fire protection 
     activities'' in section 3(y) of the Fair Labor Standards Act 
     (29 U.S.C. 203(y)).
       (5) Labor organization.--The term ``labor organization'' 
     means an organization composed in whole or in part of 
     employees, in which employees participate, and which 
     represents such employees before public safety agencies 
     concerning grievances, conditions of employment and related 
     matters.
       (6) Law enforcement officer.--The term ``law enforcement 
     officer'' has the meaning given such term in section 1204(5) 
     of the Omnibus Crime Control and Safe Streets Act of 1968 (42 
     U.S.C. 3796b(5)).
       (7) Management employee.--The term ``management employee'' 
     has the meaning given such term under applicable State law in 
     effect on the date of enactment of this Act. If no such State 
     law is in effect, the term means an individual employed by a 
     public safety employer in a position that requires or 
     authorizes the individual to formulate, determine, or 
     influence the policies of the employer.
       (8) Public safety officer.--The term ``public safety 
     officer''--
       (A) means an employee of a public safety agency who is a 
     law enforcement officer, a firefighter, or an emergency 
     medical services personnel;
       (B) includes an individual who is temporarily transferred 
     to a supervisory or management position; and
       (C) does not include a permanent supervisory or management 
     employee.
       (9) Substantially provides.--The term ``substantially 
     provides'' means compliance with the essential requirements 
     of this Act, specifically, the right to form and join a labor 
     organization, the right to bargain over wages, hours, and 
     conditions of employment, the right to sign an enforceable 
     contract, and availability of some form of mechanism to break 
     an impasse, such as arbitration, mediation, or fact finding.
       (10) Supervisory employee.--The term ``supervisory 
     employee'' has the meaning given such term under applicable 
     State law in effect on the date of enactment of this Act. If 
     no such State law is in effect, the term means an individual, 
     employed by a public safety employer, who--
       (A) has the authority in the interest of the employer to 
     hire, direct, assign, promote, reward, transfer, furlough, 
     lay off, recall, suspend, discipline, or remove public safety 
     officers, to adjust their grievances, or to effectively 
     recommend such action, if the exercise of the authority is 
     not merely routine or clerical in nature but requires the 
     consistent exercise of independent judgment; and
       (B) devotes a majority of time at work exercising such 
     authority.

     SEC. 4. DETERMINATION OF RIGHTS AND RESPONSIBILITIES.

       (a) Determination.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Authority shall make a 
     determination as to whether a State substantially provides 
     for the rights and responsibilities described in subsection 
     (b). In making such determinations, the Authority shall 
     consider and give weight, to the maximum extent practicable, 
     to the opinion of affected parties.
       (2) Subsequent determinations.--
       (A) In general.--A determination made pursuant to paragraph 
     (1) shall remain in effect unless and until the Authority 
     issues a subsequent determination, in accordance with the 
     procedures set forth in subparagraph (B).
       (B) Procedures for subsequent determinations.--Upon 
     establishing that a material change in State law or its 
     interpretation has occurred, an employer or a labor 
     organization may submit a written request for a subsequent 
     determination. If satisfied that a material change in State 
     law or its interpretation has occurred, the Director shall 
     issue a subsequent determination not later than 30 days after 
     receipt of such request.
       (3) Judicial review.--Any State, political subdivision of a 
     State, or person aggrieved by a determination of the 
     Authority under this section may, during the 60 day period 
     beginning on the date on which the determination was made, 
     petition any United States Court of Appeals in the circuit in 
     which the person resides or transacts business or in the 
     District of Columbia circuit, for judicial review. In any 
     judicial review of a determination by the Authority, the 
     procedures contained in subsections (c) and (d) of section 
     7123 of title 5, United States Code, shall be followed, 
     except that any final determination of the Authority with 
     respect to questions of fact or law shall be found to be 
     conclusive unless the court determines that the Authority's 
     decision was arbitrary and capricious.
       (b) Rights and Responsibilities.--In making a determination 
     described in subsection (a), the Authority shall consider 
     whether State law provides rights and responsibilities 
     comparable to or greater than the following:
       (1) Granting public safety officers the right to form and 
     join a labor organization, which may exclude management and 
     supervisory employees, that is, or seeks to be, recognized as 
     the exclusive bargaining representative of such employees.
       (2) Requiring public safety employers to recognize the 
     employees' labor organization (freely chosen by a majority of 
     the employees), to agree to bargain with the labor 
     organization, and to commit any agreements to writing in a 
     contract or memorandum of understanding.
       (3) Permitting bargaining over hours, wages, and terms and 
     conditions of employment.
       (4) Requiring an interest impasse resolution mechanism, 
     such as fact-finding, mediation, arbitration or comparable 
     procedures.
       (5) Requiring enforcement through State courts of--
       (A) all rights, responsibilities, and protections provided 
     by State law and enumerated in this section; and
       (B) any written contract or memorandum of understanding.
       (c) Failure to Meet Requirements.--
       (1) In general.--If the Authority determines, acting 
     pursuant to its authority under subsection (a), that a State 
     does not

[[Page S2023]]

     substantially provide for the rights and responsibilities 
     described in subsection (b), such State shall be subject to 
     the regulations and procedures described in section 5.
       (2) Effective date.--Paragraph (1) shall take effect on the 
     date that is 2 years after the date of enactment of this Act.

     SEC. 5. ROLE OF FEDERAL LABOR RELATIONS AUTHORITY.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Authority shall issue regulations 
     in accordance with the rights and responsibilities described 
     in section 4(b) establishing collective bargaining procedures 
     for public safety employers and officers in States which the 
     Authority has determined, acting pursuant to its authority 
     under section 4(a), do not substantially provide for such 
     rights and responsibilities.
       (b) Role of the Federal Labor Relations Authority.--The 
     Authority, to the extent provided in this Act and in 
     accordance with regulations prescribed by the Authority, 
     shall--
       (1) determine the appropriateness of units for labor 
     organization representation;
       (2) supervise or conduct elections to determine whether a 
     labor organization has been selected as an exclusive 
     representative by a majority of the employees in an 
     appropriate unit;
       (3) resolve issues relating to the duty to bargain in good 
     faith;
       (4) conduct hearings and resolve complaints of unfair labor 
     practices;
       (5) resolve exceptions to the awards of arbitrators;
       (6) protect the right of each employee to form, join, or 
     assist any labor organization, or to refrain from any such 
     activity, freely and without fear of penalty or reprisal, and 
     protect each employee in the exercise of such right; and
       (7) take such other actions as are necessary and 
     appropriate to effectively administer this Act, including 
     issuing subpoenas requiring the attendance and testimony of 
     witnesses and the production of documentary or other evidence 
     from any place in the United States, and administering oaths, 
     taking or ordering the taking of depositions, ordering 
     responses to written interrogatories, and receiving and 
     examining witnesses.
       (c) Enforcement.--
       (1) Authority to petition court.--The Authority may 
     petition any United States Court of Appeals with jurisdiction 
     over the parties, or the United States Court of Appeals for 
     the District of Columbia Circuit, to enforce any final orders 
     under this section, and for appropriate temporary relief or a 
     restraining order. Any petition under this section shall be 
     conducted in accordance with subsections (c) and (d) of 
     section 7123 of title 5, United States Code, except that any 
     final order of the Authority with respect to questions of 
     fact or law shall be found to be conclusive unless the court 
     determines that the Authority's decision was arbitrary and 
     capricious.
       (2) Private right of action.--Unless the Authority has 
     filed a petition for enforcement as provided in paragraph 
     (1), any party has the right to file suit in a State court of 
     competent jurisdiction to enforce compliance with the 
     regulations issued by the Authority pursuant to subsection 
     (b), and to enforce compliance with any order issued by the 
     Authority pursuant to this section. The right provided by 
     this subsection to bring a suit to enforce compliance with 
     any order issued by the Authority pursuant to this section 
     shall terminate upon the filing of a petition seeking the 
     same relief by the Authority.

     SEC. 6. STRIKES AND LOCKOUTS PROHIBITED.

       A public safety employer, officer, or labor organization 
     may not engage in a lockout, sickout, work slowdown, or 
     strike or engage in any other action that is designed to 
     compel an employer, officer, or labor organization to agree 
     to the terms of a proposed contract and that will measurably 
     disrupt the delivery of emergency services, except that it 
     shall not be a violation of this section for an employer, 
     officer, or labor organization to refuse to provide services 
     not required by the terms and conditions of an existing 
     contract.

     SEC. 7. EXISTING COLLECTIVE BARGAINING UNITS AND AGREEMENTS.

       A certification, recognition, election-held, collective 
     bargaining agreement or memorandum of understanding which has 
     been issued, approved, or ratified by any public employee 
     relations board or commission or by any State or political 
     subdivision or its agents (management officials) in effect on 
     the day before the date of enactment of this Act shall not be 
     invalidated by the enactment of this Act.

     SEC. 8. CONSTRUCTION AND COMPLIANCE.

       (a) Construction.--Nothing in this Act shall be construed--
       (1) to invalidate or limit the remedies, rights, and 
     procedures of any law of any State or political subdivision 
     of any State or jurisdiction that provides collective 
     bargaining rights for public safety officers that are equal 
     to or greater than the rights provided under this Act;
       (2) to prevent a State from enforcing a right-to-work law 
     that prohibits employers and labor organizations from 
     negotiating provisions in a labor agreement that require 
     union membership or payment of union fees as a condition of 
     employment;
       (3) to invalidate any State law in effect on the date of 
     enactment of this Act that substantially provides for the 
     rights and responsibilities described in section 4(b) solely 
     because such State law permits an employee to appear on his 
     or her own behalf with respect to his or her employment 
     relations with the public safety agency involved; or
       (4) to permit parties subject to the National Labor 
     Relations Act (29 U.S.C. 151 et seq.) and the regulations 
     under such Act to negotiate provisions that would prohibit an 
     employee from engaging in part-time employment or volunteer 
     activities during off-duty hours; or
       (5) to prohibit a State from exempting from coverage under 
     this Act a political subdivision of the State that has a 
     population of less than 5,000 or that employs less than 25 
     full time employees.

     For purposes of paragraph (5), the term ``employee'' includes 
     each and every individual employed by the political 
     subdivision except any individual elected by popular vote or 
     appointed to serve on a board or commission.
       (b) Compliance.--No State shall preempt laws or ordinances 
     of any of its political subdivisions if such laws provide 
     collective bargaining rights for public safety officers that 
     are equal to or greater than the rights provided under this 
     Act.

     SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as may be 
     necessary to carry out the provisions of this Act.
                                 ______
                                 
      By Mr. BYRD:
  S. 514. A bill to complete construction of the 13-State Appalachian 
development highway system, and for other purposes; to the Committee on 
Environment and Public Works.
  Mr. BYRD. Mr. President, today I am, again, introducing legislation 
designed to fulfill an important promise made by the Federal Government 
to the people of my State and my region some 40 years ago. That 
promise, building and completing a network of highways through the 
Appalachian region is known today as the Appalachian Development 
Highway System or ADHS. I look forward to working with my fellow 
Senators to have my legislation included in the reauthorization of the 
Federal-aid Highway Program, a program at the core of Federal 
infrastructure investment.
  Over the course of the 108th Congress, we failed to reauthorize this 
program. That legislation should have been enacted into law prior to 
beginning fiscal year 2004. We are now more than one third of the way 
through fiscal year 2005 and the 109th Congress must initiate new bills 
to get the job done. I know I speak for many Senators in stressing the 
need to complete this job during this session of Congress. We must 
authorize a bill that addresses our deteriorating highways and bridges, 
and is not squeezed by the artificial funding ceiling that the 
administration wants.
  The administration's own Conditions and Performance Report again 
reminds us that a great deal more investment in our infrastructure is 
essential to prevent the further deterioration of our nation's highways 
and bridges.
  At a September 30, 2002 hearing of the Senate Environment and Public 
Works Committee, Administrator Mary Peters testified that, despite the 
historic funding increase accomplished through TEA-21, congestion on 
our roads continues to worsen. Funding for highway infrastructure by 
all levels of government will have to increase by more than 65 percent 
or $42.2 billion per year to actually improve the condition of our 
Nation's highways. A funding increase of more than 17 percent or $11.3 
billion is necessary to simply maintain the current poor condition of 
our highway network, where more than one in four of our Nation's 
bridges are classified as deficient.
  At the end of 2002, I worked doggedly to ensure that the Senate 
prevailed in the conference with the House on the omnibus 
appropriations bill for fiscal year 2003 and rejected every penny of 
the $8.6 billion cut in highway funding proposed by President Bush. In 
2003, I was pleased to join with Senators Bond and Reid, the respective 
chairman and ranking member of the Surface Transportation Subcommittee 
in sponsoring a bipartisan amendment to the budget resolution for 
fiscal year 2004 boosting funding for our Federal-aid Highway Program 
by several billion dollars. That amendment commanded 79 votes on the 
Senate floor.
  Mr. President, I am one of only two members still serving in the 
Congress that had the privilege of casting a vote in favor of 
establishing the Interstate Highway System. I did so as a Member of the 
other body back in 1956. Of equal if not greater importance to the 
transportation needs of my region, however,

[[Page S2024]]

were the findings of the first Appalachian Regional Commission in 1964, 
that while the Interstate Highway System was slated to provide historic 
economic benefits to most of our Nation, the system would bypass the 
Appalachian region because of the extremely high costs of building 
highways through Appalachia's rugged topography.

  In 1965, the Congress adopted the Appalachian Regional Development 
Act that promised a network of modern highways to connect the 
Appalachian region to the rest of the Nation's highway network and, 
even more importantly, the rest of the Nation's economy. Absent the 
Appalachian Development Highway System, my region of the country would 
have been left with a transportation network of dangerous, narrow, 
winding roads following the path of river valleys and stream beds 
between mountains.
  One of the observations contained in Administrator Peters' testimony 
back in September of 2002 that especially caught my eye was her 
statement that ``the condition of higher-order roads, such as 
interstates, has improved considerably since 1993 while the condition 
on many lower-order roads has deteriorated.'' The pattern of road 
conditions mirrors the distribution of wealth in our country. The rich 
are getting richer while the poor get poorer. That observation becomes 
especially pertinent when one contemplates the challenge of completing 
the Appalachian Development Highway System.
  We have virtually completed the construction of the Interstate 
Highway System and have moved on to other important transportation 
goals. However, the people of my region still wait for the Federal 
Government to make good on its 40-year-old promise to complete the 
ADHS. The system is still less than 80 percent complete. My home State 
of West Virginia is below the average for the entire Appalachian region 
with only 72 percent of its mileage complete and open to traffic.
  Unfortunately, there are still children in Appalachia who lack decent 
transportation routes to school; and there are still pregnant mothers, 
elderly citizens and others who lack road access to area hospitals. 
There are thousands upon thousands of people who cannot obtain 
sustainable well-paying jobs because of poor roads. The entire status 
of the Appalachian Development Highway System is laid out in great 
detail in the Cost to Complete Report for 2002 completed by the 
Appalachian Regional Commission. This is the most comprehensive report 
on the status of the Appalachian Development Highway System to date, 
and I commend the staff of the Appalachian Regional Commission for 
their hard work on this report. The last report was completed in 1997 
just prior to Congressional consideration of TEA-21.
  The enactment of TEA-21 signaled a new day in the advancement of the 
Appalachian Development Highway System. Through the work of the 
Committee on Environment and Public Works, the House Transportation and 
Infrastructure Committee, and the administration, we took a great leap 
forward by authorizing direct contract authority from the Highway Trust 
Fund to the States for the construction of the ADHS. Up until that 
point, funding for the Appalachian Development Highway System was 
limited to uncertain general fund appropriations. By providing the 
States of the Appalachian region with a predictable source of funds to 
complete ADHS segments, TEA-21 reinvigorated efforts to keep the 
promise made to the people of the Appalachian region.

  This initiative has been a great success. States are making progress 
toward the completion of the system. Since the last Cost to Complete 
Report, 183 miles of the system have been opened to traffic and, the 
cost to complete the system has been reduced by roughly $1.7 billion in 
Federal funds.
  I am pleased to report that the 13 States, to date, have succeeded in 
obligating just under 90 percent of the obligation authority that has 
been granted to them for the completion of the system. A 90-percent 
obligation rate compares quite favorably to some of the other 
transportation programs through which the States were granted multiple 
years to obligate their funds.
  According to the ARC's Cost to Complete Report, the remaining Federal 
funds needed to complete the ADHS as the system was defined at the time 
that report was completed are now estimated to be $4.467 billion. When 
adjusted for inflation over the life of the next highway bill, using 
the standard inflation calculation for highway projects, a total of 
$5.04 billion will need to be authorized to complete the system. That 
is a lot of money and I believe that figure deserves some explanation.
  The considerable cost of completing the last 20 percent of the ADHS 
is explained by the fact that the easiest segments of the system to 
build have already been built. Much of the costs associated with 
completing the most difficult unfinished segments are driven by the 
requirement to comply with other Federal laws, especially the laws 
requiring environmental mitigation measures when building new highways 
through rural areas. While the $5.04 billion figure may seem large to 
some of my colleagues, I would remind them that the last highway bill 
authorized more than $218 billion in Federal infrastructure investment 
over 6 years. It is my sincere hope and expectation that the next 
highway bill will authorize an even greater amount.
  Of critical importance to this debate is the fact that the unfinished 
segments of the ADHS represent some of most dangerous and most 
deficient roadways in our entire Nation. Often lost in our debate over 
the necessity to invest in our highways is the issue of safety. The 
Federal Highway Administration has published reports indicating that 
substandard road conditions are a factor in 30 percent of all fatal 
highway accidents. I am quite certain that the percentage is a great 
deal higher in the Applachian region.
  The Federal Highway Administration found that upgrading two-lane 
roads to four-lane divided highways decreased fatal car accidents by 71 
percent and that the widening of traffic lanes has served to reduce 
fatalities by 21 percent. These are precisely the kind of road 
improvements that are funded through the ADHS. In my state, the largest 
segment of unfinished Appalachian Highway, if completed, will replace 
the second most dangerous segment of roadway in West Virginia. So, even 
those who would question the wisdom of completing these highways in the 
name of economic development should take a hard look at the fact that 
the people of rural Appalachia are taking their lives in their hands 
every day as they drive on dangerous roads. It is time for this 
Congress, in concert with the administration, to take the last great 
leap forward and authorize sufficient contract authority to finally 
complete the Appalachian Development Highway System. If we enact 
another six-year highway bill with sufficient funds to complete the 
system, we will finally pay the full costs of the ADHS some 45 years 
after the system was first promised to the people of my region. The 
legislation I am introducing today, the ``Appalachian Development 
Highway System Completion Act,'' will provide sufficient contract 
authority to complete the system. Importantly, it will guarantee that 
the states of the Appalachian Region do not pay a penalty, either 
through the distribution of minimum allocation funds, or the 
distribution of obligation limitation, for receiving sufficient funds 
to complete the Appalachian system.
  I am very pleased that this administration has taken on the goal of 
completing the ADHS. In her letter accompanying the Cost to Complete 
Report, Administrator Peters said ``the completion of the ADHS is an 
important part of the mission of the Federal Highway Administration. We 
consider the accessibility, mobility and economic stimulation provided 
by the ADHS to be entirely consistent with the goals of our agency.'' 
Ms. Peters further stated that the Appalachian Regional Commission's 
2002 Cost to Complete Report, ``provides a sound basis for apportioning 
future funding to complete the system.'' I thank Mary Peters and the 
entire Federal Highway Administration for their leadership on this 
issue and I look forward to working with Ms. Peters and her agency to 
ensure that this commitment is borne out in the transportation 
reauthorization legislation that is developed by the Congress.
  Completion of a new highway bill will be an enormous task for this 
Congress--one that is now more than 2

[[Page S2025]]

years overdue. As I look back over the many years of my public career, 
one of the accomplishments of which I am most proud was my amendment 
providing an additional $8 billion in funding to break the logjam 
during the debate on the Intermodal Surface Transportation Efficiency 
Act in 1991. Another was my sponsorship of the Byrd-Gramm-Baucus-Warner 
Amendment during the Senate debate of TEA-21 in 1998. That effort 
resulted in some $26 billion in funding being added to that bill and 
put us on a path to historic funding increases for our nation's highway 
infrastructure. I look forward again to working with my fellow Senators 
on completion of a bill that makes the necessary investments in our 
nation's highways, not just in the Appalachian region but across our 
entire country.
                                 ______
                                 
      By Mr. BYRD:
  S. 515. A bill to amend title 32, United States Code, to increase the 
maximum Federal share of the costs of State programs under the National 
Guard Youth Challenge Program, and for other purposes; to the Committee 
on Armed Services.
  Mr. BYRD. Mr. President, in recent years, the public profile of the 
National Guard has changed considerably. Known mainly for the 
contributions of citizen-soldiers to their States and communities, 
today the men and women of the National Guard are serving on the front 
lines in Iraq and Afghanistan, enduring hardships in two of the world's 
most dangerous places.
  In spite of the long deployments, far away from the small towns and 
big cities that these citizen-soldiers call home, the National Guard 
continues its work for our States and the American people. Today, I 
introduce legislation to support a most successful program that has 
helped the National Guard change the lives of tens of thousands of 
young Americans.
  In 1991, I provided the first funding to establish a pilot program 
known as the National Guard Civilian Youth Opportunities Program. Over 
the years, this program has expanded in size and scope and is now known 
as the National Guard Youth Challenge Program.
  The Youth Challenge Program gives high school dropouts the skills 
they need to turn their lives around. The advantage of using the 
National Guard to provide a structured environment for these students 
has been confirmed in studies by the Defense Science Board in 2000, the 
White House Task Force on Disadvantaged Children in 2003, and the 
Department of Defense in 2004.

  The program now operates 27 academies in 24 States, including West 
Virginia, Alaska, Hawaii, Georgia, Louisiana, Virginia, Michigan, 
Florida, Texas, North Carolina, and South Carolina. Over 5,000 cadets 
are now in training, and more than 58,000 have graduated from the 
program since 1993. Fully three-quarters of the Youth Challenge 
graduates have earned their high school diplomas in the program, but 
the program is at the mercy of shrinking state budgets.
  In March 2004, the Department of Defense recommended an increase in 
Federal support for the program in order to prevent any more closures 
of Youth Challenge academies. The bill I introduce today would write 
that recommendation into law, phasing in the additional Federal support 
over 3 years.
  My legislation also proposes to increase the authorization for the 
Youth Challenge program by $16.3 million, including $6.3 million for 
the proposed increase in the Federal share of the Youth Challenge 
Program's cost for Fiscal Year 2006.
  My bill authorizes an additional $10 million to provide the first 
significant per-student increase in funding since the program began. 
For more than 12 years, the funding of the Youth Challenge Program has 
remained constant at $14,000 per student, per year. Imagine that. Think 
of that. At a time when the cost of education is growing by leaps and 
bounds, the Youth Challenge program has held the line on its budget for 
more than 12 years.
  But such discipline means that there have been cutbacks in teachers, 
uniforms, and activities. The additional $10 million authorized in my 
bill would end these cutbacks, and may also be used to open new Youth 
Challenge academies, giving more at-risk youth a chance to change their 
lives.
  Many of the citizen-soldiers of the National Guard serve our country 
in distant lands, but their commitment to their communities continues. 
The legislation I introduce today will strengthen that commitment by 
expanding the National Guard Youth Challenge Program for disadvantaged 
youth.
                                 ______
                                 
      By Mrs. HUTCHISON:
  S. 517. A bill to establish a Weather Modification Operations and 
Research Board, and for other purposes; to the Committee on Commerce, 
Science, and Transportation.
  Mrs. HUTCHISON. Mr. President, I ask unanimous consent that the text 
of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 517

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Weather Modification 
     Research and Technology Transfer Authorization Act of 2005''.

     SEC. 2. PURPOSE.

       It is the purpose of this Act to develop and implement a 
     comprehensive and coordinated national weather modification 
     policy and a national cooperative Federal and State program 
     of weather modification research and development.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Board.--The term ``Board'' means the Weather 
     Modification Advisory and Research Board.
       (2) Executive director.--The term ``Executive Director'' 
     means the Executive Director of the Weather Modification 
     Advisory and Research Board.
       (3) Research and development.--The term ``research and 
     development'' means theoretical analysis, exploration, 
     experimentation, and the extension of investigative findings 
     and theories of scientific or technical nature into practical 
     application for experimental and demonstration purposes, 
     including the experimental production and testing of models, 
     devices, equipment, materials, and processes.
       (4) Weather modification.--The term ``weather 
     modification'' means changing or controlling, or attempting 
     to change or control, by artificial methods the natural 
     development of atmospheric cloud forms or precipitation forms 
     which occur in the troposphere.

     SEC. 4. WEATHER MODIFICATION ADVISORY AND RESEARCH BOARD 
                   ESTABLISHED.

       (a) In General.--There is established in the Department of 
     Commerce the Weather Modification Advisory and Research 
     Board.
       (b) Membership.--
       (1) In general.--The Board shall consist of 11 members 
     appointed by the Secretary of Commerce, of whom--
       (A) at least 1 shall be a representative of the American 
     Meteorological Society;
       (B) at least 1 shall be a representative of the American 
     Society of Civil Engineers;
       (C) at least 1 shall be a representative of the National 
     Academy of Sciences;
       (D) at least 1 shall be a representative of the National 
     Center for Atmospheric Research of the National Science 
     Foundation;
       (E) at least 2 shall be representatives of the National 
     Oceanic and Atmospheric Administration of the Department of 
     Commerce;
       (F) at least 1 shall be a representative of institutions of 
     higher education or research institutes; and
       (G) at least 1 shall be a representative of a State that is 
     currently supporting operational weather modification 
     projects.
       (2) Tenure.--A member of the Board serves at the pleasure 
     of the Secretary of Commerce.
       (3) Vacancies.--Any vacancy on the Board shall be filled in 
     the same manner as the original appointment.
       (b) Advisory Committees.--The Board may establish advisory 
     committees to advise the Board and to make recommendations to 
     the Board concerning legislation, policies, administration, 
     research, and other matters.
       (c) Initial Meeting.--Not later than 30 days after the date 
     on which all members of the Board have been appointed, the 
     Board shall hold its first meeting.
       (d) Meetings.--The Board shall meet at the call of the 
     Chair.
       (e) Quorum.--A majority of the members of the Board shall 
     constitute a quorum, but a lesser number of members may hold 
     hearings.
       (f) Chair and Vice Chair.--The Board shall select a Chair 
     and Vice Chair from among its members.

     SEC. 5. DUTIES OF THE BOARD.

       (a) Promotion of Research and Development.--In order to 
     assist in expanding the theoretical and practical knowledge 
     of weather modification, the Board shall promote and fund 
     research and development, studies, and investigations with 
     respect to--
       (1) improved forecast and decision-making technologies for 
     weather modification operations, including tailored computer 
     workstations and software and new observation systems with 
     remote sensors; and
       (2) assessments and evaluations of the efficacy of weather 
     modification, both purposeful (including cloud-seeding 
     operations) and

[[Page S2026]]

     inadvertent (including downwind effects and anthropogenic 
     effects).
       (b) Financial Assistance.--Unless the use of the money is 
     restricted or subject to any limitations provided by law, the 
     Board shall use amounts in the Weather Modification Research 
     and Development Fund--
       (1) to pay its expenses in the administration of this Act, 
     and
       (2) to provide for research and development with respect to 
     weather modifications by grants to, or contracts or 
     cooperative arrangements, with public or private agencies.
       (c) Report.--The Board shall submit to the Secretary 
     biennially a report on its findings and research results.

     SEC. 6. POWERS OF THE BOARD.

       (a) Studies, Investigations and Hearings.--The Board may 
     make any studies or investigations, obtain any information, 
     and hold any hearings necessary or proper to administer or 
     enforce this Act or any rules or orders issued under this 
     Act.
       (b) Personnel.--The Board may employ, as provided for in 
     appropriations Acts, an Executive Director and other support 
     staff necessary to perform duties and functions under this 
     Act.
       (c) Cooperation With Other Agencies.--The Board may 
     cooperate with public or private agencies to promote the 
     purposes of this Act.
       (d) Cooperative Agreements.--The Board may enter into 
     cooperative agreements with the head of any department or 
     agency of the United States, an appropriate official of any 
     State or political subdivision of a State, or an appropriate 
     official of any private or public agency or organization for 
     conducting weather modification activities or cloud-seeding 
     operations.
       (e) Conduct and Contracts for Research and Development.--
     The Executive Director, with the approval of the Board, may 
     conduct and may contract for research and development 
     activities relating to the purposes of this section.

     SEC. 7. COOPERATION WITH THE WEATHER MODIFICATION OPERATIONS 
                   AND RESEARCH BOARD.

       The heads of the departments and agencies of the United 
     States and the heads of any other public or private agencies 
     and institutions that receive research funds from the United 
     States shall, to the extent possible, give full support and 
     cooperation to the Board and to initiate independent research 
     and development programs that address weather modifications.

     SEC. 8. FUNDING.

       (a) In General.--There is established within the Treasury 
     of the United States the Weather Modification Research and 
     Development Fund, which shall consist of amounts appropriated 
     pursuant to subsection (b) or received by the Board under 
     subsection (c).
       (b) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Board for the purposes of carrying 
     out the provisions of this Act $10,000,000 for each of fiscal 
     years 2005 through 2014. Any sums appropriated under this 
     subsection shall remain available, without fiscal year 
     limitation, until expended.
       (c) Gifts.--The Board may accept, use, and dispose of gifts 
     or donations of services or property.

     SEC. 9. EFFECTIVE DATE.

       This Act shall take effect on October 1, 2005.
                                 ______
                                 
      By Mr. SESSIONS (for himself, Mr. Durbin, Mr. Kennedy, and Mr. 
        Dodd):
  S. 518. A bill to provide for the establishment of a controlled 
substance monitoring program in each State; to the Committee on Health, 
Education, Labor, and Pensions.
  Mr. KENNEDY. Mr. President, it is a privilege to join Senator 
Sessions, Senator Durbin and Senator Dodd in introducing the ``National 
All Schedules Prescription Electronic Reporting Act.'' Our goal is to 
help States establish electronic databases to monitor the use of 
prescription drugs and deal more effectively with the growing national 
problem of prescription drug abuse.
  Over 6 million Americans currently use prescription drugs for non-
medical purposes. 31 million say they've abused such drugs at least 
once in their lifetime. Since 1992, the number of young adults who 
abuse prescription pain relievers and other addictive drugs has more 
than tripled. Prescription drug abuse among youths 12 to 17 has soared 
tenfold.
  State programs to monitor addictive medications can help curb this 
abuse. Currently, 20 States have such programs in place, including 
Massachusetts, but they vary greatly in the collection and storage of 
the data, and in the methods for using the databases.
  The information contained in these databases is important, because it 
can be used to identify physicians and patients who encourage the non-
medical use of prescription drugs. It can also be used to reduce the 
diversion of prescription drugs for illegal use.
  Our bill authorizes the Secretary of HHS to make grants to States to 
establish these needed monitoring programs. For States with existing 
programs, the grants can be used to improve their systems and 
standardize the data collected to allow easy sharing of the information 
between the States.
  Any such program, however, must include strong safeguards for medical 
privacy, and make certain that the database cannot be used to put 
improper pressure on physicians to avoid prescribing essential drugs. 
The proper treatment of pain, for example, is an enormous medical 
challenge, but this essential care will be much more difficult if 
patients fear that their prescription histories will not be protected, 
or if physicians begin to look over their shoulder every time they 
prescribe pain medication.
  We all share the goal of reaching the right balance between the 
interests of patients, physicians, and law enforcement, and we think 
this legislation does that. It requires that in grant applications, 
States must propose security standards for the electronic databases, 
including appropriate encryption or other information technology. 
States also must propose standards for using the database and obtaining 
the information, including certifications to be sure that requests for 
information are legitimate. The bill requires the Secretary to provide 
a follow-up analysis of the privacy protections within two years after 
enactment.
  The national problem of prescription drug abuse worsens every year. 
Physicians want to treat pain without contributing to addiction. Law 
enforcement officials want to stop the flow of prescription drugs from 
pharmacies to the streets. A national prescription drug monitoring 
program will provide a valuable resource to achieve these goals. I 
commend Senator Sessions for his leadership on this important health 
issue, and I urge my colleagues to join us in this effort to fight 
prescription drug abuse.
                                 ______
                                 
      By Mrs. HUTCHISON:
  S. 519. A bill to amend the Lower Rio Grande Valley Water Resources 
Conservation and Improvement Act of 2000 to authorize additional 
projects and activities under that Act, and for other purposes; to the 
Committee on Energy and Natural Resources.
  Mrs. HUTCHISON. Mr. President, I rise today to offer a bill that is 
vital for water conservation in my home State of Texas. This 
legislation would amend The Lower Rio Grande Valley Water Resources and 
Conservation Improvement Act of 2000, which was passed with Unanimous 
Consent in the 106th Congress, to authorize work needed to conserve and 
enhance water supplies in the Lower Rio Grande Valley. It would do so 
by improving the water infrastructure used by farmers, ranchers, 
municipalities and a growing population.
  Improving water conveyance infrastructure is the top priority for 
enhancing water conservation in the Lower Rio Grande Valley. Currently, 
unprecedented growth coupled with Mexico's past failure to comply with 
the 1944 Water treaty, reinforces the dire need for water conservation. 
The Lower Rio Grande Valley depends upon an adequate supply of water. 
Studies show that water losses resulting from seepage, spills and 
evaporation exceed 68 billion gallons of water per year, underscoring 
the pressing demand for improvements which will ensure efficient 
conservation of water.
  By enacting this legislation, 19 additional water districts will 
enhance their ability to conserve their resources. Residents in the 
Lower Rio Grande Valley will not be forced to rely on canal systems 
subject to seepage and evaporation. Improving irrigation systems and 
updating this 100-year-old water distribution system will provide 
citizens in South Texas with a sufficient supply of one of nature's 
most valuable resources. Rather than waiting for the unpredictability 
of Mother Nature to increase water resources through rainstorms, these 
communities can rely on more effective water systems.
  I look forward to working with my colleagues to pass this measure to 
help the citizens of the Lower Rio Grande Valley better conserve their 
water resources. I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

[[Page S2027]]

                                 S. 519

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Lower Rio Grande Valley 
     Water Resources Conservation and Improvement Act of 2005''.

     SEC. 2. AUTHORIZATION OF ADDITIONAL PROJECTS AND ACTIVITIES 
                   UNDER THE LOWER RIO GRANDE WATER CONSERVATION 
                   AND IMPROVEMENT PROGRAM.

       (a) Additional Projects.--Section 4(a) of the Lower Rio 
     Grande Valley Water Resources Conservation and Improvement 
     Act of 2000 (Public Law 106-576; 114 Stat. 3067) is amended 
     by adding at the end the following:
       ``(20) In Cameron County, Texas, Bayview Irrigation 
     District No. 11, water conservation and improvement projects 
     as identified in the March 3, 2004, engineering report by NRS 
     Consulting Engineers at a cost of $1,425,219.
       ``(21) In the Cameron County, Texas, Brownsville Irrigation 
     District, water conservation and improvement projects as 
     identified in the February 11, 2004 engineering report by NRS 
     Consulting Engineers at a cost of $722,100.
       ``(22) In the Cameron County, Texas Harlingen Irrigation 
     District No. 1, water conservation and improvement projects 
     as identified in the March, 2004, engineering report by 
     Axiom-Blair Engineering at a cost of $4,173,950.
       ``(23) In the Cameron County, Texas, Cameron County 
     Irrigation District No. 2, water conservation and improvement 
     projects as identified in the February 11, 2004 engineering 
     report by NRS Consulting Engineers at a cost of $8,269,576.
       ``(24) In the Cameron County, Texas, Cameron County 
     Irrigation District No. 6, water conservation and improvement 
     projects as identified in an engineering report by Turner 
     Collie Braden, Inc., at a cost of $5,607,300.
       ``(25) In the Cameron County, Texas, Adams Gardens 
     Irrigation District No. 19, water conservation and 
     improvement projects as identified in the March, 2004 
     engineering report by Axiom-Blair Engineering at a cost of 
     $2,500,000.
       ``(26) In the Hidalgo and Cameron Counties, Texas, Hidalgo 
     and Cameron Counties Irrigation District No. 9, water 
     conservation and improvement projects as identified by the 
     February 11 engineering report by NRS Consulting Engineers at 
     a cost of $8,929,152.
       ``(27) In the Hidalgo and Willacy Counties, Texas, Delta 
     Lake Irrigation District, water conservation and improvement 
     projects as identified in the March, 2004 engineering report 
     by Axiom-Blair Engineering at a cost of $8,000,000.
       ``(28) In the Hidalgo County, Texas, Hidalgo County 
     Irrigation District No. 2, a water conservation and 
     improvement project identified in the engineering reports 
     attached to a letter dated February 11, 2004, from the 
     district's general manager, at a cost of $5,312,475.
       ``(29) In the Hidalgo County, Texas, Hidalgo County 
     Irrigation District No. 1, water conservation and improvement 
     projects identified in an engineering report dated March 5, 
     2004 by Melden and Hunt, Inc. at a cost of $5,595,018.
       ``(30) In the Hidalgo County, Texas, Hidalgo County 
     Irrigation District No. 6, water conservation and improvement 
     projects as identified in the March, 2004, engineering report 
     by Axiom-Blair Engineering at a cost of $3,450,000.
       ``(31) In the Hidalgo County, Texas Santa Cruz Irrigation 
     District No. 15, water conservation and improvement projects 
     as identified in an engineering report dated March 5, 2004 by 
     Melden and Hunt at a cost of $4,609,000.
       ``(32) In the Hidalgo County, Texas, Engelman Irrigation 
     District, water conservation and improvement projects as 
     identified in an engineering report dated March 5, 2004 by 
     Melden and Hunt, Inc. at a cost of $2,251,480.
       ``(33) In the Hidalgo County, Texas, Valley Acres Water 
     District, water conservation and improvement projects as 
     identified in an engineering report dated March, 2004 by 
     Axiom-Blair Engineering at a cost of $500,000.
       ``(34) In the Hudspeth County, Texas, Hudspeth County 
     Conservation and Reclamation District No. 1, water 
     conservation and improvement projects as identified in the 
     March, 2004, engineering report by Axiom-Blair Engineering at 
     a cost of $1,500,000.
       ``(35) In the El Paso County, Texas, El Paso County Water 
     Improvement District No. 1, water conservation and 
     improvement projects as identified in the March, 2004, 
     engineering report by Axiom-Blair Engineering at a cost of 
     $10,500,000.
       ``(36) In the Hidalgo County, Texas, Donna Irrigation 
     District, water conservation and improvement projects 
     identified in an engineering report dated March 22, 2004 by 
     Melden and Hunt, Inc. at a cost of $2,500,000.
       ``(37) In the Hidalgo County, Texas, Hidalgo County 
     Irrigation District No. 16, water conservation and 
     improvement projects identified in an engineering report 
     dated March 22, 2004 by Melden and Hunt, Inc. at a cost of 
     $2,800,000.
       ``(38) The United Irrigation District of Hidalgo County 
     water conservation and improvement projects identified in a 
     March 2004 engineering report by Sigler Winston, Greenwood 
     and Associates at a cost of $6,067,021.''.
       (b) Inclusion of Activities to Conserve Water or Improve 
     Supply; Transfers Among Projects.--Section 4 of the Lower Rio 
     Grande Valley Water Resources Conservation and Improvement 
     Act of 2000 (Public Law 106-576; 114 Stat. 3067) is amended--
       (1) by redesignating subsection (c) as subsection (e); and
       (2) by inserting after subsection (b) the following:
       ``(c) Inclusion of Activities to Conserve Water or Improve 
     Supply.--In addition to the activities identified in the 
     engineering reports referred to in subsection (a), each 
     project that the Secretary conducts or participates in under 
     subsection (a) may include any of the following:
       ``(1) The replacement of irrigation canals and lateral 
     canals with buried pipelines.
       ``(2) The impervious lining of irrigation canals and 
     lateral canals.
       ``(3) Installation of water level, flow measurement, pump 
     control, and telemetry systems.
       ``(4) The renovation and replacement of pumping plants.
       ``(5) Other activities that will result in the conservation 
     of water or an improved supply of water.
       ``(d) Transfers Among Projects.--Of amounts made available 
     for a project referred to in any of paragraphs (20) through 
     (38) of subsection (a), the Secretary may transfer and use 
     for another such project up to 10 percent.''.

     SEC. 3. REAUTHORIZATION OF APPROPRIATIONS FOR LOWER RIO 
                   GRANDE CONSTRUCTION.

       Section 4(e) of the Lower Rio Grande Valley Water Resources 
     Conservation and Improvement Act of 2000 (Public Law 106-576; 
     114 Stat. 3067) (as redesignated by section 2(b)) is amended 
     by inserting before the period the following: ``for projects 
     referred to in paragraphs (1) through (19) of subsection (a), 
     and $42,356,145 (2004 dollars) for projects referred to in 
     paragraphs (20) through (38) of subsection (a)''.
                                 ______
                                 
      By Mrs. HUTCHISON (for herself, Mr. Kennedy, Mr. Cornyn, and Mr. 
        Schumer):
  S. 521. A bill to amend the Public Health Service Act to direct the 
Secretary of Health and Human Services to establish, promote, and 
support a comprehensive prevention, research, and medical management 
referral program for hepatitis C virus infection; to the Committee on 
Health, Education, Labor, and Pensions.
  Mrs. HUTCHISON. Mr. President, I ask unanimous consent that the text 
of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 521

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Hepatitis C Epidemic Control 
     and Prevention Act''.

     SEC. 2. FINDINGS.

       Congress makes the following findings:
       (1) Approximately 5,000,000 Americans are infected with the 
     hepatitis C virus (referred to in this section as ``HCV''), 
     and more than 3,000,000 Americans are chronically infected, 
     making HCV the Nation's most common chronic blood borne virus 
     infection.
       (2) Nearly 2 percent of the population of the United States 
     have been infected with HCV.
       (3) Conservative estimates indicate that approximately 
     30,000 Americans are newly infected with HCV each year, and 
     that number has been growing since 2001.
       (4) HCV infection, in the United States, is the most common 
     cause of chronic liver disease, liver cirrhosis, and liver 
     cancer, the most common indication for liver transplant, and 
     the leading cause of death in people with HIV/AIDS. In 
     addition, there may be links between HCV and certain other 
     diseases, given that a high number of people infected with 
     HCV also suffer from type 2 diabetes, lymphoma, thyroid and 
     certain blood disorders, and autoimmune disease.
       (5) The majority of individuals infected with HCV are 
     unaware of their infection. Individuals infected with HCV 
     serve as a source of transmission to others and, since few 
     individuals are aware they are infected, they are unlikely to 
     take precautions to prevent the spread or exacerbation of 
     their infection.
       (6) There is no vaccine available to prevent HCV infection.
       (7) Treatments are available that can eradicate the disease 
     in approximately 50 percent of those who are treated, and 
     behavioral changes can slow the progression of the disease.
       (8) Conservative estimates place the costs of direct 
     medical expenses for HCV at more than $1,000,000,000 in the 
     United States annually, and such costs will undoubtedly 
     increase in the absence of expanded prevention and treatment 
     efforts.
       (9) To combat the HCV epidemic in the United States, the 
     Centers for Disease Control and Prevention developed 
     Recommendations for Prevention and Control of Hepatitis C 
     Virus (HCV) Infection and HCV-Related Chronic Disease in 1998 
     and the National Hepatitis C Prevention Strategy in 2001, and 
     the National Institutes of Health convened

[[Page S2028]]

     Consensus Development Conferences on the Management of 
     Hepatitis C in 1997 and 2002. These recommendations and 
     guidelines provide a framework for HCV prevention, control, 
     research, and medical management referral programs.
       (10) The Department of Veterans Affairs (referred to in 
     this paragraph as the ``VA''), which cares for more people 
     infected with HCV than any other health care system, is the 
     Nation's leader in HCV screening, testing, and treatment. 
     Since 1998, it has been the VA's policy to screen for HCV 
     risk factors all veterans receiving VA health care, and the 
     VA currently recommends testing for all those who are found 
     to be ``at risk'' for the virus and for all others who wish 
     to be tested. In fiscal year 2004, over 98 percent of VA 
     patients had been screened for HCV risk factors, and over 90 
     percent of those ``at risk'' were tested. For all veterans 
     who test positive for HCV and enroll in VA medical care, the 
     VA offers medications that can help HCV or its complications. 
     The VA also has programs for HCV patient and provider 
     education, clinical care, data-based quality improvement, and 
     research, and it has 4 Hepatitis C Resource Centers to 
     develop and disseminate innovative practices and tools to 
     improve patient care. This comprehensive program should be 
     commended and could potentially serve as a model for future 
     HCV programs.
       (11) Federal support is necessary to increase knowledge and 
     awareness of HCV and to assist State and local prevention and 
     control efforts.

     SEC. 3. PREVENTION, CONTROL, AND MEDICAL MANAGEMENT OF 
                   HEPATITIS C.

       Title III of the Public Health Service Act (42 U.S.C. 241 
     et seq.) is amended by adding at the end the following:

  ``PART R--PREVENTION, CONTROL, AND MEDICAL MANAGEMENT OF HEPATITIS C

     ``SEC. 399AA. FEDERAL PLAN FOR THE PREVENTION, CONTROL, AND 
                   MEDICAL MANAGEMENT OF HEPATITIS C.

       ``(a) In General.--The Secretary shall develop and 
     implement a plan for the prevention, control, and medical 
     management of the hepatitis C virus (referred to in this part 
     as `HCV') that includes strategies for education and 
     training, surveillance and early detection, and research.
       ``(b) Input in Development of Plan.--In developing the plan 
     under subsection (a), the Secretary shall--
       ``(1) be guided by existing recommendations of the Centers 
     for Disease Control and Prevention and the National 
     Institutes of Health; and
       ``(2) consult with--
       ``(A) the Director of the Centers for Disease Control and 
     Prevention;
       ``(B) the Director of the National Institutes of Health;
       ``(C) the Administrator of the Health Resources and 
     Services Administration;
       ``(D) the heads of other Federal agencies or offices 
     providing services to individuals with HCV infections or the 
     functions of which otherwise involve HCV;
       ``(E) medical advisory bodies that address issues related 
     to HCV; and
       ``(F) the public, including--
       ``(i) individuals infected with the HCV; and
       ``(ii) advocates concerned with issues related to HCV.
       ``(c) Biennial Assessment of Plan.--
       ``(1) In general.--The Secretary shall conduct a biennial 
     assessment of the plan developed under subsection (a) for the 
     purpose of incorporating into such plan new knowledge or 
     observations relating to HCV and chronic HCV (such as 
     knowledge and observations that may be derived from clinical, 
     laboratory, and epidemiological research and disease 
     detection, prevention, and surveillance outcomes) and 
     addressing gaps in the coverage or effectiveness of the plan.
       ``(2) Publication of notice of assessments.--Not later than 
     October 1 of the first even numbered year beginning after the 
     date of enactment of the Hepatitis C Epidemic Control and 
     Prevention Act, and October 1 of each even numbered year 
     thereafter, the Secretary shall publish in the Federal 
     Register a notice of the results of the assessments conducted 
     under paragraph (1). Such notice shall include--
       ``(A) a description of any revisions to the plan developed 
     under subsection (a) as a result of the assessment;
       ``(B) an explanation of the basis for any such revisions, 
     including the ways in which such revisions can reasonably be 
     expected to further promote the original goals and objectives 
     of the plan; and
       ``(C) in the case of a determination by the Secretary that 
     the plan does not need revision, an explanation of the basis 
     for such determination.

     ``SEC. 399BB. ELEMENTS OF THE FEDERAL PLAN FOR THE 
                   PREVENTION, CONTROL, AND MEDICAL MANAGEMENT OF 
                   HEPATITIS C.

       ``(a) Education and Training.--The Secretary, acting 
     through the Director of the Centers for Disease Control and 
     Prevention, shall implement programs to increase awareness 
     and enhance knowledge and understanding of HCV. Such programs 
     shall include--
       ``(1) the conduct of health education, public awareness 
     campaigns, and community outreach activities to promote 
     public awareness and knowledge about risk factors, the 
     transmission and prevention of infection with HCV, the value 
     of screening for the early detection of HCV infection, and 
     options available for the treatment of chronic HCV;
       ``(2) the training of healthcare professionals regarding 
     the prevention, detection, and medical management of the 
     hepatitis B virus (referred to in this part as `HBV') and 
     HCV, and the importance of vaccinating HCV-infected 
     individuals and those at risk for HCV infection against the 
     hepatitis A virus and HBV; and
       ``(3) the development and distribution of curricula 
     (including information relating to the special needs of 
     individuals infected with HBV or HCV, such as the importance 
     of early intervention and treatment and the recognition of 
     psychosocial needs) for individuals providing hepatitis 
     counseling, as well as support for the implementation of such 
     curricula by State and local public health agencies.
       ``(b) Early Detection and Surveillance.--
       ``(1) In general.--The Secretary, acting through the 
     Director of the Centers for Disease Control and Prevention, 
     shall support activities described in paragraph (2) to 
     promote the early detection of HCV infection, identify risk 
     factors for infection, and conduct surveillance of HCV 
     infection trends.
       ``(2) Activities.--
       ``(A) Voluntary testing programs.--
       ``(i) In general.--The Secretary shall support and promote 
     the development of State, local, and tribal voluntary HCV 
     testing programs to aid in the early identification of 
     infected individuals.
       ``(ii) Confidentiality of test results.--The results of a 
     HCV test conducted by a testing program developed or 
     supported under this subparagraph shall be considered 
     protected health information (in a manner consistent with 
     regulations promulgated under section 264(c) of the Health 
     Insurance Portability and Accountability Act of 1996 (42 
     U.S.C. 1320d-2 note)) and may not be used for any of the 
     following:

       ``(I) Issues relating to health insurance.
       ``(II) To screen or determine suitability for employment.
       ``(III) To discharge a person from employment.

       ``(B) Counseling regarding viral hepatitis.--The Secretary 
     shall support State, local, and tribal programs in a wide 
     variety of settings, including those providing primary and 
     specialty healthcare services in nonprofit private and public 
     sectors, to--
       ``(i) provide individuals with information about ongoing 
     risk factors for HCV infection with client-centered education 
     and counseling that concentrates on changing behaviors that 
     place them at risk for infection; and
       ``(ii) provide individuals infected with HCV with education 
     and counseling to reduce the risk of harm to themselves and 
     transmission of the virus to others.
       ``(C) Vaccination against viral hepatitis.--With respect to 
     individuals infected, or at risk for infection, with HCV, the 
     Secretary shall provide for--
       ``(i) the vaccination of such individuals against hepatitis 
     A virus, HBV, and other infectious diseases, as appropriate, 
     for which such individuals may be at increased risk; and
       ``(ii) the counseling of such individuals regarding 
     hepatitis A, HBV, and other viral hepatides.
       ``(D) Medical referral.--The Secretary shall support--
       ``(i) referral of persons infected with or at risk for HCV, 
     for drug or alcohol abuse treatment where appropriate; and
       ``(ii) referral of persons infected with HCV--

       ``(I) for medical evaluation to determine their stage of 
     chronic HCV and suitability for antiviral treatment; and
       ``(II) for ongoing medical management of HCV.

       ``(3) Hepatitis c coordinators.--The Secretary, acting 
     through the Director of the Centers for Disease Control and 
     Prevention, shall, upon request, provide a Hepatitis C 
     Coordinator to a State health department in order to enhance 
     the management, networking, and technical expertise needed to 
     ensure successful integration of HCV prevention and control 
     activities into existing public health programs.
       ``(c) Surveillance and Epidemiology.--
       ``(1) In general.--The Secretary shall promote and support 
     the establishment and maintenance of State HCV surveillance 
     databases, in order to--
       ``(A) identify risk factors for HCV infection;
       ``(B) identify trends in the incidence of acute and chronic 
     HCV;
       ``(C) identify trends in the prevalence of HCV infection 
     among groups that may be disproportionately affected by HCV, 
     including individuals living with HIV, military veterans, 
     emergency first responders, racial or ethnic minorities, and 
     individuals who engage in high risk behaviors, such as 
     intravenous drug use; and
       ``(D) assess and improve HCV infection prevention programs.
       ``(2) Seroprevalence studies.--The Secretary shall conduct 
     a population-based seroprevalence study to estimate the 
     current and future impact of HCV. Such studies shall consider 
     the economic and clinical impacts of HCV, as well as the 
     impact of HCV on quality of life.
       ``(3) Confidentiality.--Information contained in the 
     databases under paragraph (1) or derived through studies 
     under paragraph (2) shall be de-identified in a manner 
     consistent with regulations under section 264(c) of the 
     Health Insurance Portability and Accountability Act of 1996.

[[Page S2029]]

       ``(d) Research Network.--The Secretary, acting through the 
     Director of the Centers for Disease Control and Prevention 
     and the Director of the National Institutes of Health, 
     shall--
       ``(1) conduct epidemiologic research to identify best 
     practices for HCV prevention;
       ``(2) establish and support a Hepatitis C Clinical Research 
     Network for the purpose of conducting research related to the 
     treatment and medical management of HCV; and
       ``(3) conduct basic research to identify new approaches to 
     prevention (such as vaccines) and treatment for HCV.
       ``(e) Referral for Medical Management of Chronic HCV.--The 
     Secretary shall support and promote State, local, and tribal 
     programs to provide HCV-positive individuals with referral 
     for medical evaluation and management, including currently 
     recommended antiviral therapy when appropriate.
       ``(f) Underserved and Disproportionately Affected 
     Populations.--In carrying out this section, the Secretary 
     shall provide expanded support for individuals with limited 
     access to health education, testing, and healthcare services 
     and groups that may be disproportionately affected by HCV.
       ``(g) Study and Report Regarding VA Program and Federal 
     Plan.--
       ``(1) Study.--The Secretary shall conduct a study to 
     examine the comprehensive HCV programs that have been 
     implemented by the Department of Veterans Affairs (referred 
     to in this subsection as the `VA'), including the Hepatitis C 
     Resource Center program, to determine whether any of these 
     programs, or components of these programs, should be part of 
     the Federal plan to combat HCV.
       ``(2) Report.--Not later than 12 months after date of 
     enactment of the Hepatitis C Epidemic Control and Prevention 
     Act, the Secretary shall submit to Congress a report that 
     describes the results of the study required under paragraph 
     (1).
       ``(3) Consideration of report.--The Secretary shall take 
     into consideration the content of the report required under 
     paragraph (2) in conducting the biennial assessment required 
     under section 399AA(c).
       ``(h) Evaluation of Program.--The Secretary shall develop 
     benchmarks for evaluating the effectiveness of the programs 
     and activities conducted under this section and make 
     determinations as to whether such benchmarks have been 
     achieved.

     ``SEC. 399CC. GRANTS.

       ``(a) In General.--The Secretary may award grants to, or 
     enter into contracts or cooperative agreements with, States, 
     political subdivisions of States, Indian tribes, or nonprofit 
     entities that have special expertise relating to HCV, to 
     carry out activities under this part.
       ``(b) Application.--To be eligible for a grant, contract, 
     or cooperative agreement under subsection (a), an entity 
     shall prepare and submit to the Secretary an application at 
     such time, in such manner, and containing such information as 
     the Secretary may require.

     ``SEC. 399DD. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part $90,000,000 for fiscal year 2006, and such sums as may 
     be necessary for each of fiscal years 2007 through 2010.''.

     SEC. 4. LIVER DISEASE RESEARCH ADVISORY BOARD.

       Part B of title IV of the Public Health Service Act (42 
     U.S.C. 284 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 409J. LIVER DISEASE RESEARCH ADVISORY BOARD.

       ``(a) Establishment.--Not later than 90 days after the date 
     of enactment of the Hepatitis C Epidemic Control and 
     Prevention Act, the Director of the National Institutes of 
     Health shall establish a board to be known as the Liver 
     Disease Research Advisory Board (referred to in this section 
     as the `Advisory Board').
       ``(b) Duties.--The Advisory Board shall advise and assist 
     the Director of the National Institutes of Health concerning 
     matters relating to liver disease research, including by 
     developing and revising the Liver Disease Research Action 
     Plan.
       ``(c) Voting Members.--The Advisory Board shall be composed 
     of 18 voting members to be appointed by the Director of the 
     National Institutes of Health, in consultation with the 
     Director of the National Institute of Diabetes and Digestive 
     and Kidney Diseases (referred to in this subsection as the 
     `NIDDK'), of whom 12 such individuals shall be eminent 
     scientists and 6 such individuals shall be lay persons. The 
     Director of the National Institutes of Health, in 
     consultation with the Director of the NIDDK, shall select 1 
     of the members to serve as the Chair of the Advisory Board.
       ``(d) Ex Officio Members.--The Director of the National 
     Institutes of Health shall appoint each director of a 
     national research institute that funds liver disease research 
     to serve as a nonvoting, ex officio member of the Advisory 
     Board. The Director of the National Institutes of Health 
     shall invite 1 representative of the Centers for Disease 
     Control and Prevention, 1 representative of the Food and Drug 
     Administration, and 1 representative of the Department of 
     Veterans Affairs to serve as such a member. Each ex officio 
     member of the Advisory Board may appoint an individual to 
     serve as that member's representative on the Advisory Board.
       ``(e) Liver Disease Research Action Plan.--
       ``(1) Development.--Not later than 15 months after the date 
     of enactment of the Hepatitis C Epidemic Control and 
     Prevention Act, the Advisory Board shall develop (with 
     appropriate support from the Director) a comprehensive plan 
     for the conduct and support of liver disease research to be 
     known as the Liver Disease Research Action Plan. The Advisory 
     Board shall submit the Plan to the Director of National 
     Institutes of Health and the head of each institute or center 
     within the National Institutes of Health that funds liver 
     disease research.
       ``(2) Content.--The Liver Disease Research Action Plan 
     shall identify scientific opportunities and priorities for 
     liver disease research necessary to increase understanding of 
     and to prevent, cure, and develop better treatment protocols 
     for liver diseases.
       ``(3) Revision.--The Advisory Board shall revise every 2 
     years the Liver Disease Research Action Plan, but shall meet 
     annually to review progress and to amend the Plan as may be 
     appropriate because of new scientific discoveries.''.

  Mr. KENNEDY. Mr. President, it is a privilege to join Senators 
Hutchinson, Schumer, and Cornyn in introducing the Hepatitis C Epidemic 
Control and Prevention Act. Our goal is to provide for the prevention, 
control, and treatment of Hepatitis C viral infection through 
education, surveillance, early detection, and research.
  Hepatitis C is the most common, chronic, blood-borne infection in the 
United States. An estimated 5 million Americans are now infected with 
the Hepatitis C virus, and 30,000 more are infected every year. The 
rate of infection continues to rise--between 1990 and 2015, the Centers 
for Disease Control and Prevention project a 4-fold increase in the 
number of persons with chronic infection of the virus.
  Persons infected with the Hepatitis C virus come from all walks of 
life, but those at greatest risk include health workers, emergency 
service personnel, and drug users. Tragically, the majority of infected 
individuals are unaware of their infection, are not receiving 
treatment, and are sources of transmission of the virus to others.
  Infection with the Hepatitis C virus has serious health effects. It 
can cause liver disease, including cirrhosis and liver cancer, and is 
the leading indicator for liver transplants. The illnesses are often 
life-threatening--up to 10,000 Americans die yearly from Hepatitis C 
complications, and it is the 7th leading cause of death for men between 
the ages of 25 and 64. In addition to the human costs, the disease has 
massive financial implications. Direct costs associated with care are 
expected to exceed $1 billion a year by 2010. Without intervention, the 
epidemic is projected to result in costs of over $54 billion by the 
year 2019.
  Greater Federal investment will have a critical role in reversing 
this silent epidemic. Our Hepatitis C bill will increase public 
awareness of the dangers of Hepatitis C, and make testing widely 
available. For those already infected, it will provide counseling, 
referrals, and vaccination against Hepatitis A and B and other 
infectious diseases. It will also support research to develop a vaccine 
against Hepatitis C, just as we now have for Hepatitis A and B. It will 
create a multiagency Liver Disease Research Advisory Board and mandate 
a study of programs used by the Veteran's Administration, in order to 
provide important lessons and models of care for the nation. The 
Centers for Disease Control and Prevention will increase surveillance 
activities, and provide Hepatitis C coordinators to provide technical 
assistance and training to state public health agencies.
  This bill will have a major impact on the lives of millions of 
Americans who are infected by Hepatitis C, and the families and loved 
ones who care for them. I look forward to working closely with my 
colleagues to act quickly to pass this needed legislation. I especially 
commend the impressive work of the students at Robinson Secondary 
School in Fairfax, VA, for their continuing dedication to informing 
Members of Congress about this important issue and bringing national 
attention to it.
                                 ______
                                 
      By Mr. SALAZAR:
  S. 523. A bill to amend title 10, United States Code, to rename the 
death gratuity payable for deaths of members of the Armed Forces as 
fallen hero compensation, and for other purposes; to the Committee on 
Armed Services.
  Mr. SALAZAR. Mr. President, I rise to introduce a simple piece of 
legislation. The idea underlying this bill is

[[Page S2030]]

simple: words matter. How we characterize what we do sends a message, 
and nowhere is that more clear than in the question of survivor 
benefits for survivors of military fatalities.
  The Senate this year is considering major increases in survivor 
benefits for military families. That is as it should be, and I am proud 
to support two specific proposals to increase that assistance.
  We have an historic opportunity to raise both the direct DoD 
assistance and the life insurance payouts to families from $12,420 to 
$100,000 and to provide an extra $150,000 in life insurance payouts.
  We also have an opportunity to allow full concurrent receipt of the 
DoD's Survivor Benefit Plan and the VA's Dependency & Indemnity 
Compensation.
  We also have the opportunity to improve the help that military 
survivors get in navigating the bureaucracies of the VA and the DoD to 
get the benefits they deserve.
  And finally we have the opportunity to protect military families from 
predatory life insurance companies. All of these reforms are needed, 
and all are within our reach this year.
  As I studied this issue, I was struck by the term ``Death Gratuity.'' 
That is the name for the assistance that taxpayers make available to 
military survivors. The term gratuity means gift.
  I believe that not one of the widows, widowers, or children left 
behind think of that money as a gift. These families and these heroes 
are the ones who have given the gift to us. They are the ones who have 
given the ultimate sacrifice.
  I know that the name of the assistance is not as important as the 
assistance itself, but I am sure that hearing the term ``gratuity'' is 
a bitter pill for survivors who have just received the worst news of 
their lives.
  I for one refuse the term ``Death Gratuity,'' and I am introducing 
legislation today to change it to ``Fallen Hero Compensation.''
  This is a simple change, but it more properly reflects the sacrifices 
military survivors have made and more properly expresses the gratitude 
and dignity we owe these families.
  I ask unanimous consent that the text of this legislation be printed 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 523

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. RENAMING OF DEATH GRATUITY PAYABLE FOR DEATHS OF 
                   MEMBERS OF THE ARMED FORCES AS FALLEN HERO 
                   COMPENSATION.

       (a) In General.--Subchapter II of chapter 75 of title 10, 
     United States Code, is amended as follows:
       (1) In section 1475(a), by striking ``have a death gratuity 
     paid'' and inserting ``have fallen hero compensation paid''.
       (2) In section 1476(a)--
       (A) in paragraph (1), by striking ``a death gratuity'' and 
     inserting ``fallen hero compensation''; and
       (B) in paragraph (2), by striking ``A death gratuity'' and 
     inserting ``Fallen hero compensation''.
       (3) In section 1477(a), by striking ``A death gratuity'' 
     and inserting ``Fallen hero compensation''.
       (4) In section 1478(a), by striking ``The death gratuity'' 
     and inserting ``The amount of fallen hero compensation''.
       (5) In section 1479(1), by striking ``the death gratuity'' 
     and inserting ``fallen hero compensation''.
       (6) In section 1489--
       (A) in subsection (a), by striking ``a gratuity'' in the 
     matter preceding paragraph (1) and inserting ``fallen hero 
     compensation''; and
       (B) in subsection (b)(2), by inserting ``or other 
     assistance'' after ``lesser death gratuity''.
       (b) Clerical Amendments.--(1) Such subchapter is further 
     amended by striking ``Death gratuity:'' each place it appears 
     in the heading of sections 1475 through 1480 and 1489 and 
     inserting ``Fallen hero compensation:''.
       (2) The table of sections at the beginning of such 
     subchapter is amended by striking ``Death gratuity:'' in the 
     items relating to sections 1474 through 1480 and 1489 and 
     inserting ``Fallen hero compensation:''.
       (c) General References.--Any reference to a death gratuity 
     payable under subchapter II of chapter 75 of title 10, United 
     States Code, in any law, regulation, document, paper, or 
     other record of the United States shall be deemed to be a 
     reference to fallen hero compensation payable under such 
     subchapter, as amended by this section.
                                 ______
                                 
      By Mrs. FEINSTEIN (for herself and Mr. Sessions):
  S. 524. A bill to strengthen the consequences of the fraudulent use 
of United States or foreign passports and other immigration documents; 
to the Committee on the Judiciary.
  Mrs. FEINSTEIN. Mr. President, Senator Sessions and I are introducing 
legislation to combat the use of fraudulent immigration documents, 
particularly passports and other travel documents.
  The need to prevent and prosecute passport and travel document fraud 
is clear, and this bill would increase penalties for the use of 
fraudulent travel documents.
  We know that the threat of terrorism against the United States is 
real and as the 9/11 Commission Report states, ``for terrorists, travel 
documents are as important as weapons.'' In order to minimize the 
threat of terrorism to the United States, we must make every effort to 
limit the use of fraudulent immigration documents.
  The bill Senator Sessions and I are introducing would make the use of 
fraudulent travel documents--such as passports, Border Crossing Cards, 
Canadian driver's licenses or identification cards, transportation 
letters for parolees, military identification cards or green cards--an 
aggravated felony which will mandate detention and increase the 
likelihood of prosecution.
  Today, this is not the case. Instead, fraudulent documents are 
routinely returned to the offender and individuals are allowed to 
return home without suffering any consequences from their attempts to 
circumvent our immigration laws.
  Why is this a problem?
  Firstly, admission to the United States is a privilege and not a 
right. We should not tolerate fraud and deception at our ports of 
entry, particularly because it should be apparent that a terrorist 
organization as sophisticated as Al Qaeda is well aware of our current 
procedures and can be expected to take full advantage of them.
  Secondly, the 9/11 Commission found that as many as 15 of the 19 
hijackers on September 11, 2001 could have been intercepted by border 
officials, based in part on their travel documents. In fact, all but 
one of the September 11 hijackers acquired some form of U.S. 
identification document and some of those documents were acquired by 
fraud. All of the hijackers opened bank accounts in their names and 
used passports and other identification documents that appeared valid 
on their face.
  Even before September 11, 2001, the use of fraudulent immigration 
documents to enter the United States was a threat that we did not 
sufficiently heed.
  Let me give you some known examples of terrorists who have entered, 
or attempted to enter the United States, with fraudulent travel 
documents: Ahmed Ajaj and Ramzi Yousef attempted to enter the United 
States with fraudulent passports. Both were later implicated or 
convicted in the first World Trade Center bombing in February of 1993.
  Ahmed Ressam used a fraudulently obtained Canadian passport, and, in 
1999 attempted to cross the border from Canada at Port Angeles in 
Washington State. A border inspector felt Mr. Ressam looked nervous, 
and a search of his car turned up a trunk full of bombs. There is some 
debate about the exact target(s) of the attack; however, it seems 
likely that Los Angeles International Airport and perhaps the 
millennium celebrations in Seattle were the intended targets.
  It is no secret that: as the 9/11 Commission Report makes clear, Al 
Qaeda has established a complex international travel network that 
allowed, and presumably still allows, its operatives to legally travel 
worldwide to train, conduct reconnaissance or otherwise prepare for an 
attack. This network included, and presumably still includes, the use 
of altered and counterfeit passports and visas.
  Many countries, including France, Portugal and Saudi Arabia, have 
reported tens of thousands of passports and travel documents stolen. 
When these are stolen in large numbers, they are sold on the black 
market to others.
  The 9/11 Commission found that had the immigration system set a 
higher bar for determining whether individuals are who they claim to 
be--and ensured consequences for any violations--it could potentially 
have denied entry, deported or come into further contact with the 
terrorists that were involved in the September 11, 2001 attack on the 
United States.

[[Page S2031]]

  Last year, the Department of Homeland Security Office of the 
Inspector General issued the following reports on lost and stolen 
passports: ``A Review of the Use of Stolen passports from Visa Waiver 
Countries to Enter the United States'', December 2004; and, ``An 
Evaluation of the Security Implications of the Visa Waiver Program'' 
(April 2004).
  I encourage my colleagues to read these reports on the 
vulnerabilities in our current border security. To summarize, the 
reports state that: In the United States alone, immigration officials 
have records for 1.2 million stolen passports.
  Aliens applying for admission into the United States using stolen 
passports have little reason to fear being caught and are usually 
admitted. It has been standard practice to simply return a fraudulent 
passport to an individual seeking entry and let them return to their 
country. This, in effect, is the soft underbelly of the entire passport 
system.
  The Director of the U.S. National Central Bureau of INTERPOL said 
that for 55 of the 181 INTERPOL countries, there probably were over 10 
million lost and stolen passports that might be in circulation.
  Law enforcement officials state that lost and stolen passports are 
the greatest security problem associated with the Visa Waiver Program.
  And now that I've mentioned the Visa Waiver Program, let me say a few 
things about this program.
  I believe the Visa Waiver Program is the Achilles heel in our 
immigration system. This program allows roughly 13 million individuals 
to enter the United States each year from 27 countries, without a 
visa--meaning they enter without a thorough background and security 
check.
  Since we do not have in place a fully operational entry and exit 
program, specifically an exit system, we have no real way of knowing if 
millions of travelers who entered the United States have left as 
required.
  Last year, Congress extended the deadline for one year for countries 
participating in the Visa Waiver Program to include biometric 
indicators in passports to verify the identity of bearers at the 
request of the Administration.
  It is likely this deadline will again need to be extended.
  I believe that granting another extension will be another opportunity 
for terrorists, organized crime rings, petty crooks, counterfeiters and 
forgers to continue entering the United States virtually unnoticed 
because we won't be able to confirm that they are who they say they 
are.
  The bottom line is that we must crack down on document fraud if we 
are to protect our borders. There are thousands, even millions, of 
lost, stolen and fraudulent international passports, travel documents, 
driver's licenses and other identity documents in circulation, and we 
must now allow those to compromise our homeland security.
  The purpose of this bill is twofold: first, to give the Department of 
Justice the incentive to vigorously prosecute all cases involving 
passport and travel document fraud, as well as certain other egregious 
cases of immigration document fraud.
  Second, by encouraging policies that make these cases a priority for 
prosecution, it will require that Department of Homeland Security 
officials not return fraudulent documents to travelers, but instead 
turn them over to the Department of Justice so that they can institute 
criminal proceedings.
  Unfortunately, the prosecution of immigration document fraud is not a 
high priority for the Department of Justice, because, although current 
penalties allow for a sentence of up to 25 years, typically most 
alien's convicted of travel document fraud serve less than one year in 
prison.
  Also, the immigration consequences of document fraud are relatively 
minor. Low sentences, coupled with minimal immigration consequences, do 
not provide much incentive for U.S. Attorneys nationwide to consider 
the prosecution of immigration document cases a priority nor can they 
be seen as anything but a slap on the wrists of the offenders.
  Senator Sessions and I pose a solution to this problem by toughening 
penalties so that we instill in those seeking to use fraudulent travel 
and immigration documents a real sense of fear that they will be caught 
and prosecuted to the fullest extent possible under our laws.
  In any kind of meaningful border protection plan, one must have a 
good sense of who is entering and exiting the country. That simply 
cannot be known if the individual is using a fraudulent document.
  Mr. President, I ask my colleagues to join me in supporting this 
legislation.
  I also ask by unanimous consent that the text of this bill be printed 
in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 524

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. FRAUDULENT USE OF PASSPORTS.

       (a) Criminal Code.--
       (1) Secretary of homeland security.--Section 1546 of title 
     18, United States Code, is amended by striking ``the 
     Commissioner of the Immigration and Naturalization Service'' 
     each place it appears and inserting ``the Secretary of 
     Homeland Security''.
       (2) Definition of passport.--Chapter 75 of title 18, United 
     States Code, is amended by adding at the end the following:

     ``Sec. 1548. Definition

       ``In sections 1543 and 1544, the term `passport' means any 
     passport issued by the United States or any foreign 
     country.''.
       (3) Clerical amendment.--The table of sections for chapter 
     75 of title 18, United States Code, is amended by adding at 
     the end the following:

``Sec. 1548. Definition.''.

       (b) Immigration and Nationality Act.--Section 101(a)(43)(P) 
     of the Immigration and Nationality Act (8 U.S.C. 
     1101(a)(43)(P)) is amended to read as follows:
       ``(P) except for a first offense for which an alien 
     affirmatively shows was committed solely for the purpose of 
     assisting, abetting, or aiding only the alien's spouse, 
     child, or parent to violate a provision of this Act--
       ``(i) an offense described in section 1542, 1543, or 1544 
     of title 18, United States Code (relating to false statements 
     in the application, forgery, or misuse of a passport);
       ``(ii) an offense described in section 1546(a) of title 18, 
     United States Code, relating to document fraud used as 
     evidence of authorized stay or employment in the United 
     States for which the term of imprisonment is at least 12 
     months; or
       ``(iii) any other offense described in section 1546(a) of 
     title 18, United States Code, relating to entry into the 
     United States, regardless of the term of imprisonment 
     imposed.''.

     SEC. 2. RELEASE AND DETENTION PRIOR TO DISPOSITION.

       Section 3142(f)(1) of title 18, United States Code, is 
     amended--
       (1) in subparagraph (C), by striking ``or'' after the 
     semicolon; and
       (2) by adding at the end the following:
       ``(E) an offense under section 1542, 1543, 1544, or 1546(a) 
     of this title; or''.
                                 ______
                                 
      By Mr. ALEXANDER (for himself, Mr. Dodd, Mr. Enzi, Mr. Kennedy, 
        Mr. Hatch, and Mr. Roberts):
  S. 525. A bill to amend the Child Care and Development Block Grant 
Act of 1990 to reauthorize the Act, to improve early learning 
opportunities and promote school preparedness, and for other purposes; 
to the Committee on Health, Education, Labor, and Pensions.
  Mr. ALEXANDER. Mr. President, today I am here with Senator Dodd and 
on behalf of Senator Enzi and Senator Kennedy to introduce the Caring 
for Children Act of 2005 which reauthorizes the Child Care and 
Development Block Grant, CCDBG, program. This program provides funding 
to States for child care vouchers.
  Across the United States last year low-income parents of 2.3 million 
children were able to use these certificates or ``vouchers'' to help 
pay the cost of child care while the parents worked or continued their 
education so they could get a better job.
  Last year, my home State of Tennessee spent $251,760,528 for child 
care, much of which came through the CCDBG program. This important 
program legislates how States are to administer child care. States 
provide certificates to parents to choose the type of care that best 
fits their children's needs.
  In Tennessee, 1 percent of children receive care in their own home, 
19 percent have chosen to place their children in family home care, 5 
percent are in group care while the vast majority, 75 percent, are in 
child care centers. About 24,500 Tennessee families with children are 
enrolled in some form of subsidized child care, and as of January of 
this year, 46,591 children were receiving subsidized child care in my 
home State.

[[Page S2032]]

  A family of four, which is a typical size for eligible families in 
Tennessee, is eligible for child care support when their median income 
is no more than 60 percent of the State's median income. That means 
that families making $33,000 or less are eligible for some assistance, 
though they may also have to make a co-payment. For example, a family 
of four making $32,000 would be required to pay $56 per week for the 
first child and $42 per week for the second child.
  This year we are making the CCDBG program even better with four key 
improvements.
  First, the act increases the quality set-aside from 4 percent, 
current law, to 6 percent. Eighty percent of parents report that their 
child care is poor to mediocre, so we need to take steps to improve 
overall quality of care. The quality set-aside is used to offer 
training and professional development to child care workers. States can 
also use quality funds to provide technical assistance to child care 
facilities to help them enhance learning opportunities for pre-school 
or school-aged children while in care. Of course, States could choose 
to do even more, and I am happy to report that my own State of 
Tennessee spends at least 12 percent on quality improvements.
  Second, the act requires States to use at least 70 percent of funds 
for direct services. This will ensure that more of the money gets into 
the hands of parents rather than State bureaucracies. Under current 
law, States vary greatly in what percentage they use for direct 
services since current language simply specifies that a ``significant'' 
portion be used for services.

  Third, the legislation emphasizes the importance of school 
preparedness by adding a new goal: development of pre-reading, 
prenumeracy, math and language skills for children in care. Research 
has proven that a child's brain doubles in size between birth and age 
3. These are formative years for both physical and cognitive 
development.
  Fourth, the bill establishes a temporary small business competitive 
grant program to encourage small businesses to work together to provide 
child care services for employees. Senator Roberts developed this 
innovative $30 million grant program, and I am glad it could be 
included in the bill.
  The CCDBG program is important for supporting parents raising 
children across the country. One such parent is Tameka Payton. Tameka 
was nineth grade when she had her first child, Javonta. When she became 
pregnant, Tameka was a ward of the State. She had grown up with an 
abusive mother who was addicted to drugs. After being removed from the 
care of her mother, she was placed in the care of her aunt who also 
proved abusive. Tameka ran away, and was placed in the foster care 
system until she was 18. She then had two more children, Jayla and 
Michael, before finding a family resource center at the Salvation Army 
that connected her and her children to Tennessee's Family First 
program.
  The Family First program and the child care certificates she receives 
through this program enabled Tameka to find work and become a better 
mother. She is currently working 40 hours a week while working on her 
GED. She is about to take the test. Everyday she brings her children 4, 
2, and 1 to the McNeilly Center. Tameka feels confident that not only 
are her children receiving quality care but also she is learning how to 
be a better mother. Her children's teachers are receptive and answer 
all of her questions. She has learned to spend time reading to her 
children so she can contribute to their education, too.
  The Federal CCDBG program funds the child care certificates Tameka 
receives. Without them, Tameka, and her children, would be in a very 
different place today.
  Tameka's dream is to get her GED and attend Tennessee State 
University. The support she receives has given her the chance to 
realize that dream, and make a better life for herself and her 
children. I expect her hard work to payoff.
  Another Tennessee parent who has benefited from the program is Renee 
Prigmore. Renee is currently a toddler teacher at the McNeilly Center 
in Nashville. But she first found McNeilly as a parent, not as a 
teacher. As a single parent of three, she used her child care 
certificates at McNeilly to leave her kids in quality care while she 
attended community college.
  Renee has attained her degree as a Child Development Associate, CDA. 
Her children are now 10, 6, and 4 and she is exiting out of the child 
care program because she is able to provide for her three kids. The 
child care certificates she received enabled her to take the time to 
receive that degree and provide for her family.
  People like Tameka Payton and Renee Prigmore have used the CCDBG 
program to build a new and better life for their families. With the 
introduction of the Caring for Children Act, we can make that program 
even stronger, so that parents raising children are able to build a 
better future for their families. I ask my colleagues to join with me 
in this important endeavor.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 525

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Caring for 
     Children Act of 2005''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

      TITLE I--CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT OF 1990

Sec. 101. Short title and goals.
Sec. 102. Authorization of appropriations.
Sec. 103. Lead agency.
Sec. 104. State plan.
Sec. 105. Activities to improve the quality of child care.
Sec. 106. Optional priority use of additional funds.
Sec. 107. Reporting requirements.
Sec. 108. National activities.
Sec. 109. Allocation of funds for Indian tribes, quality improvement, 
              and a hotline.
Sec. 110. Definitions.
Sec. 111. Rules of construction.

     TITLE II--ENHANCING SECURITY AT CHILD CARE CENTERS IN FEDERAL 
                               FACILITIES

Sec. 201. Definitions.
Sec. 202. Enhancing security.

  TITLE III--REMOVAL OF BARRIERS TO INCREASING THE SUPPLY OF QUALITY 
                               CHILD CARE

Sec. 301. Small business child care grant program.

      TITLE I--CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT OF 1990

     SEC. 101. SHORT TITLE AND GOALS.

       (a) Heading.--Section 658A of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9801 note) is 
     amended by striking the section heading and inserting the 
     following:

     ``SEC. 658A. SHORT TITLE AND GOALS.''.

       (b) Goals.--Section 658A(b) of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9801 note) is 
     amended--
       (1) in paragraph (3), by striking ``encourage'' and 
     inserting ``assist'';
       (2) in paragraph (4), by striking ``parents'' and all that 
     follows and inserting ``low-income working parents;'';
       (3) by redesignating paragraph (5) as paragraph (8); and
       (4) by inserting after paragraph (4) the following:
       ``(5) to assist States in improving the quality of child 
     care available to families;
       ``(6) to promote school preparedness by encouraging 
     children, families, and caregivers to engage in 
     developmentally appropriate and age-appropriate activities in 
     child care settings that will--
       ``(A) improve the children's social, emotional, and 
     behavioral skills; and
       ``(B) foster their early cognitive, pre-reading, and 
     language development, and prenumeracy and mathematics skills;
       ``(7) to promote parental and family involvement in the 
     education of young children in child care settings; and''.

     SEC. 102. AUTHORIZATION OF APPROPRIATIONS.

       Section 658B of the Child Care and Development Block Grant 
     Act of 1990 (42 U.S.C. 9858) is amended by striking 
     ``subchapter'' and all that follows and inserting 
     ``subchapter $2,300,000,000 for fiscal year 2006, 
     $2,500,000,000 for fiscal year 2007, $2,700,000,000 for 
     fiscal year 2008, $2,900,000,000 for fiscal year 2009, and 
     $3,100,000,000 for fiscal year 2010.''.

     SEC. 103. LEAD AGENCY.

       Section 658D(a) of the Child Care and Development Block 
     Grant Act of 1990 (42 U.S.C. 9858b(a)) is amended by striking 
     ``designate'' and all that follows and inserting ``designate 
     an agency (which may be an appropriate collaborative agency), 
     or establish a joint interagency office, that complies with 
     the requirements of subsection (b) to serve as the lead 
     agency for the State under this subchapter.''.

     SEC. 104. STATE PLAN.

       (a) Lead Agency.--Section 658E(c)(1) of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858c(c)(1)) 
     is amended

[[Page S2033]]

     by striking ``designated'' and inserting ``designated or 
     established''.
       (b) Policies and Procedures.--Section 658E(c)(2) of the 
     Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
     9858c(c)(2)) is amended--
       (1) in subparagraph (A)(i)(II), by striking ``section 
     658P(2)'' and inserting ``section 658T(2)'';
       (2) by striking subparagraph (D) and inserting the 
     following:
       ``(D) Consumer and child care provider education 
     information.--Certify that the State will--
       ``(i) collect and disseminate, through resource and 
     referral services and other means as determined by the State, 
     to parents of eligible children, child care providers, and 
     the general public, information regarding--

       ``(I) the promotion of informed child care choices, 
     including information about the quality and availability of 
     child care services;
       ``(II) research and best practices concerning children's 
     development, including early cognitive development;
       ``(III) the availability of assistance to obtain child care 
     services; and
       ``(IV) other programs for which families that receive child 
     care services for which financial assistance is provided 
     under this subchapter may be eligible, including the food 
     stamp program established under the Food Stamp Act of 1977 (7 
     U.S.C. 2011 et seq.), the special supplemental nutrition 
     program for women, infants, and children established by 
     section 17 of the Child Nutrition Act of 1966 (42 U.S.C. 
     1786), the child and adult care food program established 
     under section 17 of the Richard B. Russell National School 
     Lunch Act (42 U.S.C. 1766), and the medicaid and State 
     children's health insurance programs under titles XIX and XXI 
     of the Social Security Act (42 U.S.C. 1396 et seq. and 1397aa 
     et seq.); and

       ``(ii) report to the Secretary the manner in which the 
     consumer education information described in clause (i) was 
     provided to parents and the number of parents to whom such 
     consumer education information was provided, during the 
     period of the previous State plan.'';
       (3) by striking subparagraph (E) and inserting the 
     following:
       ``(E) Compliance with state and tribal licensing 
     requirements.--
       ``(i) In general.--Certify that the State (or the Indian 
     tribe or tribal organization) involved has in effect 
     licensing requirements applicable to child care services 
     provided within the State (or area served by the tribe or 
     organization), and provide a detailed description of such 
     requirements and of how such requirements are effectively 
     enforced.
       ``(ii) Construction.--Nothing in clause (i) shall be 
     construed to require that licensing requirements be applied 
     to specific types of providers of child care services.'';
       (4) in subparagraph (F)--
       (A) in the first sentence, by striking ``within the State, 
     under State or local law,'' and inserting ``within the State 
     (or area served by the Indian tribe or tribal organization), 
     under State or local law (or tribal law),''; and
       (B) in the second sentence, by striking ``State or local 
     law'' and inserting ``State or local law (or tribal law)''; 
     and
       (5) by adding at the end the following:
       ``(I) Protection for working parents.--
       ``(i) Redetermination process.--Describe the procedures and 
     policies that are in place to ensure that working parents 
     (especially parents in families receiving assistance under a 
     State program funded under part A of title IV of the Social 
     Security Act (42 U.S.C. 601 et seq.)) are not required to 
     unduly disrupt their employment in order to comply with the 
     State's requirements for redetermination of eligibility for 
     assistance under this subchapter.
       ``(ii) Minimum period.--Demonstrate that each child that 
     receives assistance under this subchapter in the State will 
     receive such assistance for not less than 6 months before the 
     State redetermines the eligibility of the child under this 
     subchapter, except as provided in clause (iii).
       ``(iii) Period before termination.--At the option of the 
     State, demonstrate that the State will not terminate 
     assistance under this subchapter based on a parent's loss of 
     work or cessation of attendance at a job training or 
     educational program for which the family was receiving the 
     assistance, without continuing the assistance for a 
     reasonable period of time, of not less than 1 month, after 
     such loss or cessation in order for the parent to engage in a 
     job search and resume work, or resume attendance of a job 
     training or educational program, as soon as possible.
       ``(J) Coordination with other programs.--Describe how the 
     State, in order to expand accessibility and continuity of 
     quality early care and early education, will coordinate the 
     early childhood education activities assisted under this 
     subchapter with--
       ``(i) programs carried out under the Head Start Act (42 
     U.S.C. 9831 et seq.), including the Early Head Start programs 
     carried out under section 645A of that Act (42 U.S.C. 9840a);
       ``(ii)(I) Early Reading First and Even Start programs 
     carried out under subparts 2 and 3 of part B of title I of 
     the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6371 et seq., 6381 et seq.);
       ``(II) other preschool programs carried out under title I 
     of that Act (20 U.S.C. 6301 et seq.); and
       ``(III) the Ready-to-Learn Television program carried out 
     under subpart 3 of part D of title II of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6775 et seq.);
       ``(iii) programs carried out under section 619 and part C 
     of the Individuals with Disabilities Education Act;
       ``(iv) State prekindergarten programs; and
       ``(v) other early childhood education programs.
       ``(K) Training in early learning and childhood 
     development.--Describe any training requirements that are in 
     effect within the State that are designed to enable child 
     care providers to promote the social, emotional, physical, 
     and cognitive development of children and that are applicable 
     to child care providers that provide services for which 
     assistance is made available under this subchapter in the 
     State.
       ``(L) Public-private partnerships.--Demonstrate how the 
     State is encouraging partnerships among State agencies, other 
     public agencies, and private entities, to leverage existing 
     service delivery systems (as of the date of submission of the 
     State plan) for early childhood education and to increase the 
     supply and quality of child care services for children who 
     are less than 13 years of age.
       ``(M) Access to care for certain populations.--Demonstrate 
     how the State is addressing the child care needs of parents 
     eligible for child care services for which assistance is 
     provided under this subchapter, who have children with 
     special needs, work nontraditional hours, or require child 
     care services for infants and toddlers.
       ``(N) Coordination with title iv of the social security 
     act.--Describe how the State will inform parents receiving 
     assistance under a State program funded under part A of title 
     IV of the Social Security Act (42 U.S.C. 601 et seq.) and 
     low-income parents about eligibility for assistance under 
     this subchapter.''.
       (c) Use of Block Grant Funds.--Section 658E(c)(3) the Child 
     Care and Development Block Grant Act of 1990 (42 U.S.C. 
     9858c(c)(3)) is amended--
       (1) in subparagraph (A), by striking ``as required under'' 
     and inserting ``in accordance with''; and
       (2) in subparagraph (B)--
       (A) by striking ``The State'' and inserting the following:
       ``(i) In general.--The State'';
       (B) in clause (i) (as designated in subparagraph (A)), by 
     striking ``appropriate to realize any of the goals specified 
     in paragraphs (2) through (5) of section 658A(b)'' and 
     inserting ``appropriate (which may include an activity 
     described in clause (ii)) to realize any of the goals 
     specified in paragraphs (2) through (8) of section 658A(b)''; 
     and
       (C) by adding at the end the following:
       ``(ii) Child care resource and referral system.--A State 
     may use amounts described in clause (i) to establish or 
     support a system of local child care resource and referral 
     organizations coordinated, to the extent determined 
     appropriate by the State, by a statewide private, nonprofit, 
     community-based lead child care resource and referral 
     organization. The local child care resource and referral 
     organizations shall--

       ``(I) provide parents in the State with information, and 
     consumer education, concerning the full range of child care 
     options, including child care provided during nontraditional 
     hours and through emergency child care centers, in their 
     communities;
       ``(II) collect and analyze data on the supply of and demand 
     for child care in political subdivisions within the State;
       ``(III) submit reports to the State containing data and 
     analysis described in clause (II); and
       ``(IV) work to establish partnerships with public agencies 
     and private entities to increase the supply and quality of 
     child care services.''.

       (d) Direct Services.--Section 658E(c)(3) of the Child Care 
     and Development Block Grant Act of 1990 (42 U.S.C. 
     9858c(c)(3)) is amended--
       (1) in subparagraph (A), by striking ``(D)'' and inserting 
     ``(E)''; and
       (2) by adding at the end the following:
       ``(E) Direct services.--From amounts provided to a State 
     for a fiscal year to carry out this subchapter, the State 
     shall--
       ``(i) reserve the minimum amount required to be reserved 
     under section 658G, and the funds for costs described in 
     subparagraph (C); and
       ``(ii) from the remainder, use not less than 70 percent to 
     fund direct services (as defined by the State).''.
       (e) Payment Rates.--Section 658E(c)(4) of the Child Care 
     and Development Block Grant Act of 1990 (42 U.S.C. 
     9858c(c)(4)) is amended--
       (1) in subparagraph (A), by striking ``The State plan'' and 
     all that follows and inserting the following:
       ``(i) Survey.--The State plan shall--

       ``(I) demonstrate that the State has, after consulting with 
     local area child care program administrators, developed and 
     conducted a statistically valid and reliable survey of the 
     market rates for child care services in the State (that 
     reflects variations in the cost of child care services by 
     geographic area, type of provider, and age of child) within 
     the 2 years preceding the date of the submission of the 
     application containing the State plan;
       ``(II) detail the results of the State market rates survey 
     conducted pursuant to subclause (I);

[[Page S2034]]

       ``(III) describe how the State will provide for timely 
     payment for child care services, and set payment rates for 
     child care services, for which assistance is provided under 
     this subchapter in accordance with the results of the market 
     rates survey conducted pursuant to subclause (I) without 
     reducing the number of families in the State receiving such 
     assistance under this subchapter, relative to the number of 
     such families on the date of introduction of the Caring for 
     Children Act of 2005; and
       ``(IV) describe how the State will, not later than 30 days 
     after the completion of the survey described in subclause 
     (I), make the results of the survey widely available through 
     public means, including posting the results on the Internet.

       ``(ii) Equal access.--The State plan shall include a 
     certification that the payment rates are sufficient to ensure 
     equal access for eligible children to child care services 
     comparable to child care services in the State or substate 
     area that are provided to children whose parents are not 
     eligible to receive child care assistance under any Federal 
     or State program.''; and
       (2) in subparagraph (B)--
       (A) by striking ``Nothing'' and inserting the following:
       ``(i) No private right of action.--Nothing''; and
       (B) by adding at the end the following:
       ``(ii) No prohibition of certain different rates.--Nothing 
     in this subchapter shall be construed to prevent a State from 
     differentiating the payment rates described in subparagraph 
     (A) on the basis of--

       ``(I) geographic location of child care providers (such as 
     location in an urban or rural area);
       ``(II) the age or particular needs of children (such as 
     children with special needs and children served by child 
     protective services);
       ``(III) whether the providers provide child care during 
     weekend and other nontraditional hours; and
       ``(IV) the State's determination that such differentiated 
     payment rates are needed to enable a parent to choose child 
     care that the parent believes to be of high quality.''.

     SEC. 105. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.

       Section 658G of the Child Care and Development Block Grant 
     Act of 1990 (42 U.S.C. 9858e) is amended to read as follows:

     ``SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.

       ``(a) In General.--
       ``(1) Reservation.--Each State that receives funds to carry 
     out this subchapter for a fiscal year shall reserve and use 
     not less than 6 percent of the funds for activities provided 
     directly, or through grants or contracts with resource and 
     referral organizations or other appropriate entities, that 
     are designed to improve the quality of child care services.
       ``(2) Activities.--The funds reserved under paragraph (1) 
     may only be used to--
       ``(A) develop and implement voluntary guidelines on pre-
     reading and language skills and activities, and prenumeracy 
     and mathematics skills and activities, for child care 
     programs in the State, that are aligned with State standards 
     for kindergarten through grade 12 or the State's general 
     goals for school preparedness;
       ``(B) support activities and provide technical assistance 
     in Federal, State, and local child care settings to enhance 
     early learning for preschool and school-aged children, to 
     promote literacy, to foster school preparedness, and to 
     support later school success;
       ``(C) offer training, professional development, and 
     educational opportunities for child care providers that 
     relate to the use of developmentally appropriate and age-
     appropriate curricula, and early childhood teaching 
     strategies, that are scientifically based and aligned with 
     the social, emotional, physical, and cognitive development of 
     children, including--
       ``(i) developing and operating distance learning child care 
     training infrastructures;
       ``(ii) developing model technology-based training courses;
       ``(iii) offering training for caregivers in informal child 
     care settings; and
       ``(iv) offering training for child care providers who care 
     for infants and toddlers and children with special needs.
       ``(D) engage in programs designed to increase the retention 
     and improve the competencies of child care providers, 
     including wage incentive programs and initiatives that 
     establish tiered payment rates for providers that meet or 
     exceed child care services guidelines, as defined by the 
     State;
       ``(E) evaluate and assess the quality and effectiveness of 
     child care programs and services offered in the State to 
     young children on improving overall school preparedness; and
       ``(F) carry out other activities determined by the State to 
     improve the quality of child care services provided in the 
     State and for which measurement of outcomes relating to 
     improved child safety, child well-being, or school 
     preparedness is possible.
       ``(b) Certification.--Beginning with fiscal year 2006, the 
     State shall annually submit to the Secretary a certification 
     in which the State certifies that the State was in compliance 
     with subsection (a) during the preceding fiscal year and 
     describes how the State used funds made available to carry 
     out this subchapter to comply with subsection (a) during that 
     preceding fiscal year.
       ``(c) Strategy.--The State shall annually submit to the 
     Secretary--
       ``(1) beginning with fiscal year 2006, an outline of the 
     strategy the State will implement during that fiscal year to 
     address the quality of child care services for which 
     financial assistance is made available under this subchapter, 
     including--
       ``(A) a statement specifying how the State will address the 
     activities carried out under subsection (a);
       ``(B) a description of quantifiable, objective measures 
     that the State will use to evaluate the State's progress in 
     improving the quality of the child care services (including 
     measures regarding the impact, if any, of State efforts to 
     improve the quality by increasing payment rates, as defined 
     in section 658H(c)), evaluating separately the impact of the 
     activities listed in each of such subparagraphs on the 
     quality of the child care services; and
       ``(C) a list of State-developed child care services quality 
     targets quantified for such fiscal year for such measures; 
     and
       ``(2) beginning with fiscal year 2007, a report on the 
     State's progress in achieving such targets for the preceding 
     fiscal year.
       ``(d) Improvement Plan.--If the Secretary determines that a 
     State failed to make progress as described in subsection 
     (c)(2) for a fiscal year--
       ``(1) the State shall submit an improvement plan that 
     describes the measures the State will take to make that 
     progress; and
       ``(2) the State shall comply with the improvement plan by a 
     date specified by the Secretary but not later than 1 year 
     after the date of the determination.
       ``(e) Construction.--Nothing in this subchapter shall be 
     construed to require that the State apply measures for 
     evaluating quality of child care services to specific types 
     of child care providers.''.

     SEC. 106. OPTIONAL PRIORITY USE OF ADDITIONAL FUNDS.

       The Child Care and Development Block Grant Act of 1990 is 
     amended by inserting after section 658G (42 U.S.C. 9858e) the 
     following:

     ``SEC. 658H. OPTIONAL PRIORITY USE OF ADDITIONAL FUNDS.

       ``(a) In General.--If a State receives funds to carry out 
     this subchapter for a fiscal year, and the amount of the 
     funds exceeds the amount of funds the State received to carry 
     out this subchapter for fiscal year 2005, the State shall 
     consider using a portion of the excess--
       ``(1) to support payment rate increases in accordance with 
     the market rate survey conducted pursuant to section 
     658E(c)(4);
       ``(2) to support the establishment of tiered payment rates 
     as described in section 658G(a)(2)(D); and
       ``(3) to support payment rate increases for care for 
     children in communities served by local educational agencies 
     that have been identified for improvement under section 
     1116(c)(3) of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 6316(c)(3)).
       ``(b) No Requirement To Reduce Child Care Services.--
     Nothing in this section shall be construed to require a State 
     to take an action that the State determines would result in a 
     reduction of child care services to families of eligible 
     children.
       ``(c) Payment Rate.--In this section, the term `payment 
     rate' means the rate of State payment or reimbursement to 
     providers for subsidized child care.''.

     SEC. 107. REPORTING REQUIREMENTS.

       (a) Heading.--Section 658K of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858i) is 
     amended by striking the section heading and inserting the 
     following:

     ``SEC. 658K. REPORTS AND AUDITS.''.

       (b) Required Information.--Section 658K(a) of the Child 
     Care and Development Block Grant Act of 1990 (42 U.S.C. 
     9858i(a)) is amended to read as follows:
       ``(a) Reports.--
       ``(1) In general.--A State that receives funds to carry out 
     this subchapter shall collect the information described in 
     paragraph (2) on a monthly basis.
       ``(2) Required information.--The information required under 
     this paragraph shall include, with respect to a family unit 
     receiving assistance under this subchapter, information 
     concerning--
       ``(A) family income;
       ``(B) county of residence;
       ``(C) the gender, race, and age of children receiving such 
     assistance;
       ``(D) whether the head of the family unit is a single 
     parent;
       ``(E) the sources of family income, including--
       ``(i) employment, including self-employment; and
       ``(ii) assistance under a State program funded under part A 
     of title IV of the Social Security Act (42 U.S.C. 601 et 
     seq.) and a State program for which State spending is counted 
     toward the maintenance of effort requirement under section 
     409(a)(7) of the Social Security Act (42 U.S.C. 609(a)(7));
       ``(F) the type of child care in which the child was 
     enrolled (such as family child care, home care, center-based 
     child care, or other types of child care described in section 
     658T(5));
       ``(G) whether the child care provider involved was a 
     relative;
       ``(H) the cost of child care for such family, separately 
     stating the amount of the subsidy payment of the State and 
     the amount of the co-payment of the family toward such cost;
       ``(I) the average hours per month of such care;

[[Page S2035]]

       ``(J) household size;
       ``(K) whether the parent involved reports that the child 
     has an individualized education program or an individualized 
     family service plan, as such terms are defined in section 602 
     of the Individuals with Disabilities Education Act; and
       ``(L) the reason for any termination of benefits under this 
     subchapter, including whether the termination was due to--
       ``(i) the child's age exceeding the allowable limit;
       ``(ii) the family income exceeding the State eligibility 
     limit;
       ``(iii) the State recertification or administrative 
     requirements not being met;
       ``(iv) parent work, training, or education status no longer 
     meeting State requirements;
       ``(v) a nonincome related change in status; or
       ``(vi) other reasons;
     during the period for which such information is required to 
     be submitted.
       ``(3) Submission to secretary.--A State described in 
     paragraph (1) shall, on a quarterly basis, submit to the 
     Secretary the information required to be collected under 
     paragraph (2) and the number of children and families 
     receiving assistance under this subchapter (stated on a 
     monthly basis). Information on the number of families 
     receiving the assistance shall also be posted on the website 
     of such State. In the fourth quarterly report of each year, a 
     State described in paragraph (1) shall also submit to the 
     Secretary information on the annual number and type of child 
     care providers (as described in section 658T(5)) that 
     received funding under this subchapter and the annual number 
     of payments made by the State through vouchers, under 
     contracts, or by payment to parents reported by type of child 
     care provider.
       ``(4) Use of samples.--
       ``(A) Authority.--A State may comply with the requirement 
     to collect the information described in paragraph (2) through 
     the use of disaggregated case record information on a sample 
     of families selected through the use of scientifically 
     acceptable sampling methods approved by the Secretary.
       ``(B) Sampling and other methods.--The Secretary shall 
     provide the States with such case sampling plans and data 
     collection procedures as the Secretary determines necessary 
     to produce statistically valid samples of the information 
     described in paragraph (2). The Secretary may develop and 
     implement procedures for verifying the quality of data 
     submitted by the States.''.
       (c) Period of Compliance and Waivers.--
       (1) In general.--States shall have 2 years from the date of 
     enactment of this Act to comply with the changes to data 
     collection and reporting required by the amendments made by 
     this section.
       (2) Waivers.--The Secretary of Health and Human Services 
     may grant a waiver from paragraph (1) to States with plans to 
     procure data systems.

     SEC. 108. NATIONAL ACTIVITIES.

       Section 658L of the Child Care and Development Block Grant 
     Act of 1990 (42 U.S.C. 9858j) is amended to read as follows:

     ``SEC. 658L. NATIONAL ACTIVITIES.

       ``(a) Report.--
       ``(1) In general.--The Secretary shall, not later than 
     April 30, 2006, and annually thereafter, prepare and submit 
     to the Committee on Education and the Workforce of the House 
     of Representatives and the Committee on Health, Education, 
     Labor, and Pensions of the Senate, and, not later than 30 
     days after the date of such submission, post on the 
     Department of Health and Human Services website, a report 
     that contains the following:
       ``(A) A summary and analysis of the data and information 
     provided to the Secretary in the State reports submitted 
     under sections 658E, 658G(c), and 658K.
       ``(B) Aggregated statistics on and an analysis of the 
     supply of, demand for, and quality of child care, early 
     education, and nonschool-hour programs.
       ``(C) An assessment and, where appropriate, recommendations 
     for Congress concerning efforts that should be undertaken to 
     improve the access of the public to quality and affordable 
     child care in the United States.
       ``(D) A progress report describing the progress of the 
     States in streamlining data reporting, the Secretary's plans 
     and activities to provide technical assistance to States, and 
     an explanation of any barriers to getting data in an accurate 
     and timely manner.
       ``(2) Collection of information.--The Secretary may make 
     arrangements with resource and referral organizations, to 
     utilize the child care data system of the resource and 
     referral organizations at the national, State, and local 
     levels, to collect the information required by paragraph 
     (1)(B).
       ``(b) Grants To Improve Quality and Access.--
       ``(1) In general.--The Secretary shall award grants to 
     States, from allotments made under paragraph (2), to improve 
     the quality of and access to child care for infants and 
     toddlers, subject to the availability of appropriations for 
     this purpose.
       ``(2) Allotments.--From funds reserved under section 
     658O(a)(3) for a fiscal year, the Secretary shall allot to 
     each State an amount that bears the same relationship to such 
     funds as the amount the State receives for the fiscal year 
     under section 658O bears to the amount all States receive for 
     the fiscal year under section 658O.
       ``(c) Toll-Free Hotline.--The Secretary shall award a grant 
     or contract, or enter into a cooperative agreement for the 
     operation of a national toll-free hotline to assist families 
     in accessing local information on child care options and 
     providing consumer education materials, subject to the 
     availability of appropriations for this purpose.
       ``(d) Technical Assistance.--The Secretary shall provide 
     technical assistance to States on developing and conducting 
     the State market rates survey described in section 
     658E(c)(4)(A)(i).''.

     SEC. 109. ALLOCATION OF FUNDS FOR INDIAN TRIBES, QUALITY 
                   IMPROVEMENT, AND A HOTLINE.

       (a) In General.--Section 658O(a) of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858m(a)) is 
     amended--
       (1) in paragraph (2), by striking ``not less than 1 
     percent, and not more than 2 percent,'' and inserting ``2 
     percent''; and
       (2) by adding at the end the following:
       ``(3) Grants to improve quality and access.--The Secretary 
     shall reserve an amount not to exceed $100,000,000 for each 
     fiscal year to carry out section 658L(b), subject to the 
     availability of appropriations for this purpose.
       ``(4) Toll-free hotline.--The Secretary shall reserve an 
     amount not to exceed $1,000,000 to carry out section 658L(c), 
     subject to the availability of appropriations for this 
     purpose.''.
       (b) Conforming Amendment.--Section 658O(c)(1) of the Child 
     Care and Development Block Grant Act of 1990 (42 U.S.C. 
     9858m(c)(1)) is amended by inserting ``(in accordance with 
     the requirements of subparagraphs (E) and (F) of section 
     658E(c)(2) for such tribes or organizations)'' after 
     ``applications under this section''.

     SEC. 110. DEFINITIONS.

       (a) Eligible Child.--Section 658P(4) of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858n(4)) is 
     amended--
       (1) in subparagraph (B), in the matter preceding clause 
     (i), by striking ``85 percent of the State median income for 
     a family of the same size'' and inserting ``an income level 
     determined by the State involved, with priority based on need 
     as defined by the State''; and
       (2) in subparagraph (C)--
       (A) in clause (i), by striking ``a parent or parents'' and 
     inserting ``a parent (including a legal guardian or foster 
     parent) or parents''; and
       (B) by striking clause (ii) and inserting the following:
       ``(ii)(I) is receiving, or needs to receive, protective 
     services (which may include foster care) or is a child with 
     significant cognitive or physical disabilities as defined by 
     the State; and
       ``(II) resides with a parent (including a legal guardian or 
     foster parent) or parents not described in clause (i).''.
       (b) Child With Special Needs.--Section 658P of the Child 
     Care and Development Block Grant Act of 1990 (42 U.S.C. 
     9858n) is amended by inserting after paragraph (2) the 
     following:
       ``(3) Child with special needs.--The term `child with 
     special needs' means--
       ``(A) a child with a disability, as defined in section 602 
     of the Individuals with Disabilities Education Act;
       ``(B) a child who is eligible for early intervention 
     services under part C of the Individuals with Disabilities 
     Education Act; and
       ``(C) a child with special needs, as defined by the State 
     involved.''.
       (c) Lead Agency.--Section 658P(8) of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858n(8)) is 
     amended by striking ``section 658B(a)'' and inserting 
     ``section 658D(a)''.
       (d) Parent.--Section 658P(9) of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858n(9)) is 
     amended by inserting ``, foster parent,'' after ``guardian''.
       (e) Native Hawaiian Organization.--Section 658P(14)(B) of 
     the Child Care and Development Block Grant Act of 1990 (42 
     U.S.C. 9858n(14)(B)) is amended by striking ``Native Hawaiian 
     Organization, as defined in section 4009(4) of the Augustus 
     F. Hawkins-Robert T. Stafford Elementary and Secondary School 
     Improvement Amendments of 1988 (20 U.S.C. 4909(4))'' and 
     inserting ``Native Hawaiian organization, as defined in 
     section 7207 of the Elementary and Secondary Education Act of 
     1965 (20 U.S.C. 7517)''.
       (f) Redesignation.--The Child Care and Development Block 
     Grant Act of 1990 (42 U.S.C. 9858 et seq.) is amended--
       (1) by redesignating section 658P as section 658T; and
       (2) by moving that section 658T to the end of the Act.

     SEC. 111. RULES OF CONSTRUCTION.

       The Child Care and Development Block Grant Act of 1990 (as 
     amended by section 110(f)) is further amended by inserting 
     after section 658O (42 U.S.C. 9858m) the following:

     ``SEC. 658P. RULES OF CONSTRUCTION.

       ``Nothing in this subchapter shall be construed to require 
     a State to impose State child care licensing requirements on 
     any type of early childhood provider, including any such 
     provider who is exempt from State child care licensing 
     requirements on the date of enactment of the Caring for 
     Children Act of 2005.''.

     TITLE II--ENHANCING SECURITY AT CHILD CARE CENTERS IN FEDERAL 
                               FACILITIES

     SEC. 201. DEFINITIONS.

       In this title:

[[Page S2036]]

       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of General Services.
       (2) Corresponding child care facility.--The term 
     ``corresponding child care facility'', used with respect to 
     the Chief Administrative Officer of the House of 
     Representatives, the Librarian of Congress, or the head of a 
     designated entity in the Senate, means a child care facility 
     operated by, or under a contract or licensing agreement with, 
     an office of the House of Representatives, the Library of 
     Congress, or an office of the Senate, respectively.
       (3) Entity sponsoring a child care facility.--The term 
     ``entity sponsoring'', used with respect to a child care 
     facility, means a Federal agency that operates, or an entity 
     that enters into a contract or licensing agreement with a 
     Federal agency to operate, a child care facility primarily 
     for the use of Federal employees.
       (4) Executive agency.--The term ``Executive agency'' has 
     the meaning given the term in section 105 of title 5, United 
     States Code, except that the term--
       (A) does not include the Department of Defense and the 
     Coast Guard; and
       (B) includes the General Services Administration, with 
     respect to the administration of a facility described in 
     paragraph (5)(B).
       (5) Executive facility.--The term ``executive facility''--
       (A) means a facility that is owned or leased by an 
     Executive agency; and
       (B) includes a facility that is owned or leased by the 
     General Services Administration on behalf of a judicial 
     office.
       (6) Federal agency.--The term ``Federal agency'' means an 
     Executive agency, a legislative office, or a judicial office.
       (7) Judicial facility.--The term ``judicial facility'' 
     means a facility that is owned or leased by a judicial office 
     (other than a facility that is also a facility described in 
     paragraph (5)(B)).
       (8) Judicial office.--The term ``judicial office'' means an 
     entity of the judicial branch of the Federal Government.
       (9) Legislative facility.--The term ``legislative 
     facility'' means a facility that is owned or leased by a 
     legislative office.
       (10) Legislative office.--The term ``legislative office'' 
     means an entity of the legislative branch of the Federal 
     Government.

     SEC. 202. ENHANCING SECURITY.

       (a) Coverage.--
       (1) Executive branch.--The Administrator shall issue the 
     regulations described in subsection (b) for child care 
     facilities, and entities sponsoring child care facilities, in 
     executive facilities.
       (2) Legislative branch.--The Chief Administrative Officer 
     of the House of Representatives, the Librarian of Congress, 
     and the head of a designated entity in the Senate shall issue 
     the regulations described in subsection (b) for corresponding 
     child care facilities, and entities sponsoring the 
     corresponding child care facilities, in legislative 
     facilities.
       (3) Judicial branch.--The Director of the Administrative 
     Office of the United States Courts shall issue the 
     regulations described in subsection (b) for child care 
     facilities, and entities sponsoring child care facilities, in 
     judicial facilities.
       (b) Regulations.--The officers and designated entity 
     described in subsection (a) shall issue regulations that 
     concern--
       (1) matters relating to an occupant emergency plan and 
     evacuations, such as--
       (A) providing for building security committee membership 
     for each director of a child care facility described in 
     subsection (a);
       (B) establishing a separate section in an occupant 
     emergency plan for each such facility;
       (C) promoting familiarity with procedures and evacuation 
     routes for different types of emergencies (such as 
     emergencies caused by hazardous materials, a fire, a bomb 
     threat, a power failure, or a natural disaster);
       (D) strengthening onsite relationships between security 
     personnel and the personnel of such a facility, such as by 
     ensuring that the post orders of guards reflect 
     responsibility for the facility;
       (E) providing specific, clear, and concise evacuation 
     instructions for a facility, including instructions 
     specifying who authorizes an evacuation;
       (F) providing for good evacuation equipment, especially 
     cribs; and
       (G) promoting the ability to evacuate without outside 
     assistance; and
       (2) matters relating to relocation sites, such as--
       (A) promoting an informed parent body that is knowledgeable 
     about evacuation procedures and relocation sites;
       (B) providing regularly updated parent contact information 
     (regarding matters such as names, locations, electronic mail 
     addresses, and cell phone and other telephone numbers);
       (C) establishing remote telephone contact for parents, to 
     and from areas that are not less than 10 miles from such a 
     facility; and
       (D) providing for an alternate site (in addition to regular 
     sites) in the event of a catastrophe, which site may 
     include--
       (i) a site that would be an unreasonable distance from the 
     facility under normal circumstances; and
       (ii) a facility with 24-hour operations, such as a hotel or 
     law school library.

  TITLE III--REMOVAL OF BARRIERS TO INCREASING THE SUPPLY OF QUALITY 
                               CHILD CARE

     SEC. 301. SMALL BUSINESS CHILD CARE GRANT PROGRAM.

       (a) Establishment.--The Secretary of Health and Human 
     Services (referred to in this section as the ``Secretary'') 
     shall establish a program to award grants to States, on a 
     competitive basis, to assist States in providing funds to 
     encourage the establishment and operation of employer-
     operated child care programs.
       (b) Application.--To be eligible to receive a grant under 
     this section, a State shall prepare and submit to the 
     Secretary an application at such time, in such manner, and 
     containing such information as the Secretary may require, 
     including an assurance that the funds required under 
     subsection (e) will be provided.
       (c) Amount of Grant.--The Secretary shall determine the 
     amount of a grant to a State under this section based on the 
     population of the State as compared to the population of all 
     States receiving grants under this section.
       (d) Use of Funds.--
       (1) In general.--A State shall use amounts provided under a 
     grant awarded under this section to provide assistance to 
     small businesses (or consortia formed in accordance with 
     paragraph (3)) located in the State to enable the small 
     businesses (or consortia) to establish and operate child care 
     programs. Such assistance may include--
       (A) technical assistance in the establishment of a child 
     care program;
       (B) assistance for the startup costs related to a child 
     care program;
       (C) assistance for the training of child care providers;
       (D) scholarships for low-income wage earners;
       (E) the provision of services to care for sick children or 
     to provide care to school-aged children;
       (F) the entering into of contracts with local resource and 
     referral or local health departments;
       (G) assistance for care for children with disabilities;
       (H) payment of expenses for renovation or operation of a 
     child care facility; or
       (I) assistance for any other activity determined 
     appropriate by the State.
       (2) Application.--In order for a small business or 
     consortium to be eligible to receive assistance from a State 
     under this section, the small business involved shall prepare 
     and submit to the State an application at such time, in such 
     manner, and containing such information as the State may 
     require.
       (3) Preference.--
       (A) In general.--In providing assistance under this 
     section, a State shall give priority to an applicant that 
     desires to form a consortium to provide child care in a 
     geographic area within the State where such care is not 
     generally available or accessible.
       (B) Consortium.--For purposes of subparagraph (A), a 
     consortium shall be made up of 2 or more entities that shall 
     include small businesses and that may include large 
     businesses, nonprofit agencies or organizations, local 
     governments, or other appropriate entities.
       (4) Limitation.--With respect to grant funds received under 
     this section, a State may not provide in excess of $500,000 
     in assistance from such funds to any single applicant.
       (e) Matching Requirement.--To be eligible to receive a 
     grant under this section, a State shall provide assurances to 
     the Secretary that, with respect to the costs to be incurred 
     by a covered entity receiving assistance in carrying out 
     activities under this section, the covered entity will make 
     available (directly or through donations from public or 
     private entities) non-Federal contributions to such costs in 
     an amount equal to--
       (1) for the first fiscal year in which the covered entity 
     receives such assistance, not less than 50 percent of such 
     costs ($1 for each $1 of assistance provided to the covered 
     entity under the grant);
       (2) for the second fiscal year in which the covered entity 
     receives such assistance, not less than 66\2/3\ percent of 
     such costs ($2 for each $1 of assistance provided to the 
     covered entity under the grant; and
       (3) for the third fiscal year in which the covered entity 
     receives such assistance, not less than 75 percent of such 
     costs ($3 for each $1 of assistance provided to the covered 
     entity under the grant.
       (f) Requirements of Providers.--To be eligible to receive 
     assistance under a grant awarded under this section, a child 
     care provider shall comply with all applicable State and 
     local licensing and regulatory requirements and all 
     applicable health and safety standards in effect in the 
     State.
       (g) State-Level Activities.--A State may not retain more 
     than 3 percent of the amount described in subsection (c) for 
     State administration and other State-level activities.
       (h) Administration.--
       (1) State responsibility.--A State shall have 
     responsibility for administering a grant awarded for the 
     State under this section and for monitoring covered entities 
     that receive assistance under such grant.
       (2) Audits.--A State shall require each covered entity 
     receiving assistance under the grant awarded under this 
     section to conduct an annual audit with respect to the 
     activities of the covered entity. Such audits shall be 
     submitted to the State.
       (3) Misuse of funds.--

[[Page S2037]]

       (A) Repayment.--If the State determines, through an audit 
     or otherwise, that a covered entity receiving assistance 
     under a grant awarded under this section has misused the 
     assistance, the State shall notify the Secretary of the 
     misuse. The Secretary, upon such a notification, may seek 
     from such a covered entity the repayment of an amount equal 
     to the amount of any such misused assistance plus interest.
       (B) Appeals process.--The Secretary shall by regulation 
     provide for an appeals process with respect to repayments 
     under this paragraph.
       (i) Reporting Requirements.--
       (1) 2-year study.--
       (A) In general.--Not later than 2 years after the date on 
     which the Secretary first awards grants under this section, 
     the Secretary shall conduct a study to determine--
       (i) the capacity of covered entities to meet the child care 
     needs of communities within States;
       (ii) the kinds of consortia that are being formed with 
     respect to child care at the local level to carry out 
     programs funded under this section; and
       (iii) who is using the programs funded under this section 
     and the income levels of such individuals.
       (B) Report.--Not later than 28 months after the date on 
     which the Secretary first awards grants under this section, 
     the Secretary shall prepare and submit to the appropriate 
     committees of Congress a report on the results of the study 
     conducted in accordance with subparagraph (A).
       (2) 4-year study.--
       (A) In general.--Not later than 4 years after the date on 
     which the Secretary first awards grants under this section, 
     the Secretary shall conduct a study to determine the number 
     of child care facilities that are funded through covered 
     entities that received assistance through a grant awarded 
     under this section and that remain in operation, and the 
     extent to which such facilities are meeting the child care 
     needs of the individuals served by such facilities.
       (B) Report.--Not later than 52 months after the date on 
     which the Secretary first awards grants under this section, 
     the Secretary shall prepare and submit to the appropriate 
     committees of Congress a report on the results of the study 
     conducted in accordance with subparagraph (A).
       (j) Definitions.--In this section:
       (1) Covered entity.--The term ``covered entity'' means a 
     small business or a consortium formed in accordance with 
     subsection (d)(3).
       (2) Small business.--The term ``small business'' means an 
     employer who employed an average of at least 2 but not more 
     than 50 employees on business days during the preceding 
     calendar year.
       (k) Authorization of Appropriations.--
       (1) In general.--There is authorized to be appropriated to 
     carry out this section, $50,000,000 for the period of fiscal 
     years 2006 through 2010.
       (2) Evaluations and administration.--With respect to the 
     total amount appropriated for such period in accordance with 
     this subsection, not more than $2,500,000 of that amount may 
     be used for expenditures related to conducting evaluations 
     required under, and the administration of, this section.
       (l) Termination of Program.--The program established under 
     subsection (a) shall terminate on September 30, 2010.

  Mr. ENZI. Mr. President, today I am pleased to be joined by Senators 
Kennedy, Alexander and Dodd in introducing the ``Caring for Children 
Act of 2005'' which reauthorizes the Child Care and Development Block 
Grant (CCDBG). This legislation is essential to continued success with 
welfare reform because it helps low-income parents find and pay for 
affordable child care so that they can work.
  As members of this body know, child care vouchers provided to parents 
by States using CCDBG funds greatly facilitate the expansion of child 
care subsidies and promote parental choice by allowing eligible parents 
to select their preferred type of care setting and provider, including 
faith-based providers.
  Current law provides States with flexibility in determining how to 
address the child care needs of low-income families and children, 
including establishing the eligibility requirements for participation.
  The legislation we are introducing today adds even greater 
flexibility by proposing to eliminate the arbitrary Federal ceiling for 
eligibility. Removal of this ceiling, previously set at 85 percent of 
State median income, eliminates any Federal income-based restriction on 
State determination of who receives benefits. However States must 
continue to prioritize families based on need.
  States provide child care assistance to both TANF and non-TANF 
families. For the first time the Caring for Children Act requires 
States and territories to show they are spending at least 70 percent of 
their mandatory child care money on actual subsidies for child care. 
For TANF families, families transitioning off TANF, and families at 
risk of becoming dependent on public assistance an assurance of the 
State's commitment to providing significant funds for direct assistance 
is critical.
  The bill we are introducing today also addresses factors that in the 
past made finding care difficult for parents. We have specifically 
required States to meet the child care needs of parents who have 
children with special needs, parents who work non-traditional hours, or 
parents who need child care for infants and toddlers. Additionally, the 
legislation streamlines and reduces unnecessary paperwork by allowing 
States to provide assistance to eligible families for six months before 
re-determining eligibility.
  The bill also supports the needs of small business owners and 
operators, by providing resources for small businesses to join together 
to provide child care for their employees. This will be of great help 
for rural areas, where small businesses provide most of the employment 
opportunities.

  Last, but most importantly, the bill responds to, in significant 
ways, the very disturbing reports about the lack of quality in child 
care and the lack of tangible results from current investments in 
quality. The bill before us increases the quality set-aside from 4 to 6 
percent and directs child care quality funds toward activities that can 
really make a difference. Under this bill, States would develop child 
care quality targets and would be held accountable to reach those 
targets. Quality funds would be available for States to: develop and 
implement voluntary guidelines on pre-reading and language skills and 
prenumeracy and mathematic skills and activities for child care 
programs in the State; support activities and provide technical 
assistance to enhance early learning and school preparedness in 
Federal, State and local child care settings; offer training, 
professional development and educational opportunities for child care 
providers that relate to scientifically based curricula and teaching 
strategies through several means including distance learning; offer 
incentives for child care providers that meet or exceed State child 
care services guidelines; evaluate and assess the quality and 
effectiveness of child care programs and services offered in the State 
to young children on improving overall school preparedness; and other 
activities that can be shown to improve child safety, child well-being, 
or school preparedness.
  The improvements made to the program by this legislation and the 
resources it provides will continue to help provide quality child care 
in my home State of Wyoming, and other rural States. Many families in 
Wyoming reside in very isolated areas, and by helping to support child 
care centers in those rural areas, this legislation will help provide 
high quality child care; a service that many in those communities might 
otherwise be forced to do without.
  This legislation represents a truly bi-partisan effort and I look 
forward to having it signed into law this year. The Caring for Children 
Act includes some very important changes in our nation's premier child 
care program that provide families with the assistance they need to 
work and access to child care that best meets their children's needs.
                                 ______
                                 
      By Mr. REED (for himself, Mr. Dodd, Mr. Kennedy, and Mrs. 
        Murray):
  S. 526. A bill to amend the Child Care and Development Block Grant 
Act of 1990 to provide incentive grants to improve the quality of child 
care; to the Committee on Health, Education, Labor, and Pensions.
  Mr. REED. Mr. President, I am pleased to be joined today by Senators 
Dodd, Kennedy, and Murray in once again introducing the Child Care 
Quality Incentive Act, which seeks to redouble our child care efforts 
and renew the child care partnership with the States by providing 
incentive funding to increase payment rates.
  This legislation seeks to put high-quality child care within the 
reach of more working families. As things stand, States too often fund 
only a fraction of prevailing child care costs.
  Under the Child Care and Development Block Grant (CCDBG), States are 
required to perform market rate surveys every two years. Yet many 
States

[[Page S2038]]

disregard them when it comes time to setting their payment rates, the 
level at which States reimburse child care providers who care for low-
income children who receive a child care subsidy. As a result, States 
are unable to meet the law's promise to give eligible low-income 
families the same access to child care services as non-eligible 
families.
  At stake are safe, supportive, and educationally enriching 
environments for children during the formative years that set the stage 
for future performance in school and beyond. When payment rates are set 
too low, child care centers that serve low-income children struggle to 
survive and may have to close. If they choose to stay afloat despite 
the limited ability of families to pay, the tradeoffs directly impact 
the quality of care. Such tradeoffs include smaller staffs, underpaid 
employees with few or no benefits, and limited employee training, 
educational materials, and community services like health screenings. 
Those centers that avoid this route may turn low-income children away 
or be forced out of business.
  Under welfare reform we expect the neediest parents to hold jobs to 
sustain their families. We must also afford them responsible choices to 
protect their children while they pursue their economic future.
  Our legislation creates a new mandatory funding pool under the Child 
Care and Development Block Grant to help States increase payment rates, 
while requiring States to set payment rates in line with updated market 
rate surveys. As such, it will allow more low-income families access to 
quality child care, and increase the availability of quality child care 
for all families.
  Support for this legislation is strong among leading national 
organizations such as USA Child Care, the Children's Defense Fund, the 
YMCA of the USA, Catholic Charities of the USA, the Child Welfare 
League of America, and many more. A range of local and State 
organizations and providers have also offered endorsements.
  This year, Congress is slated to reauthorize the Child Care and 
Development Block Grant. I urge my colleagues to join Senators Dodd, 
Kennedy, Murray, and me in this endeavor to improve the quality of 
child care by cosponsoring the Child Care Quality Incentive Act and 
working to include its provisions in the CCDBG reauthorization. The 
time to bring payment rates in line with market realities is now. Only 
then will the commitment to offer equal access to quality child care 
ring true.
  Mr. President, I ask unanimous consent that the text of this 
legislation be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 526

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Child Care Quality Incentive 
     Act of 2005''.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress makes the following findings:
       (1) Recent research on early brain development reveals that 
     much of a child's growth is determined by early learning and 
     nurturing care. Research also shows that quality early care 
     and education leads to increased cognitive abilities, 
     positive classroom learning behavior, increased likelihood of 
     long-term school success, and greater likelihood of long-term 
     economic and social self-sufficiency.
       (2) Each day an estimated 13,000,000 children, including 
     6,000,000 infants and toddlers, spend some part of their day 
     in child care. However, a study in 4 States found that only 1 
     in 7 child care centers provide care that promotes healthy 
     development, while 1 in 8 child care centers provide care 
     that threatens the safety and health of children.
       (3) Full-day child care can cost $4,000 to $12,000 per 
     year.
       (4) Although Federal assistance is available for child 
     care, funding is severely limited. Even with Federal 
     subsidies, many families cannot afford child care. For 
     families with young children and a monthly income under 
     $1,200, the cost of child care typically consumes 25 percent 
     of their income.
       (5) Payment (or reimbursement) rates, which determine the 
     maximum the State will reimburse a child care provider for 
     the care of a child who receives a subsidy, are too low to 
     ensure that quality care is accessible to all families.
       (6) Low payment rates directly affect the kind of care 
     children get and whether families can find quality child care 
     in their communities. In many instances, low payment rates 
     force child care providers serving low-income children to cut 
     corners in ways that impact the quality of care for the 
     children, including reducing the number of staff, eliminating 
     professional development opportunities, and cutting enriching 
     educational activities and services.
       (7) Children in low-quality child care are more likely to 
     have delayed reading and language skills, and display more 
     aggression toward other children and adults.
       (8) Increased payment rates lead to higher quality child 
     care as child care providers are able to attract and retain 
     qualified staff, provide salary increases and professional 
     training, maintain a safe and healthy environment, and 
     purchase basic supplies, children's literature, and 
     developmentally appropriate educational materials.
       (b) Purpose.--The purpose of this Act is to improve the 
     quality of, and access to, child care by increasing child 
     care payment rates.

     SEC. 3. PAYMENT RATES.

       Section 658E(c)(4) of the Child Care and Development Block 
     Grant Act of 1990 (42 U.S.C. 9858c(c)(4)) is amended--
       (1) by redesignating subparagraph (B) as subparagraph (C);
       (2) in subparagraph (A), by striking ``to comparable child 
     care services'' and inserting ``to child care services that 
     are comparable (in terms of quality and types of services 
     provided) to child care services''; and
       (3) by inserting after subparagraph (A) the following:
       ``(B) Payment rates.--
       ``(i) Surveys.--In order to provide the certification 
     described in subparagraph (A), the State shall conduct 
     statistically valid and reliable market rate surveys (that 
     reflect variations in the cost of child care services by 
     locality), in accordance with such methodology standards as 
     the Secretary shall issue. The State shall conduct the 
     surveys not less often than at 2-year intervals, and use the 
     results of such surveys to implement, not later than 1 year 
     after conducting each survey, payment rates described in 
     subparagraph (A) that ensure equal access to comparable 
     services as required by subparagraph (A).
       ``(ii) Cost of living adjustments.--The State shall adjust 
     the payment rates at intervals between such surveys to 
     reflect increases in the cost of living, in such manner as 
     the Secretary may specify.
       ``(iii) Rates for different ages and types of care.--The 
     State shall ensure that the payment rates reflect variations 
     in the cost of providing child care services for children of 
     different ages and providing different types of care.
       ``(iv) Public dissemination.--The State shall, not later 
     than 30 days after the completion of each survey described in 
     clause (i), make the results of the survey widely available 
     through public means, including posting the results on the 
     Internet.''.

     SEC. 4. INCENTIVE GRANTS TO IMPROVE THE QUALITY OF CHILD 
                   CARE.

       (a) Funding.--Section 658B of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858) is 
     amended--
       (1) by striking ``There'' and inserting the following:
       ``(a) Authorization of Appropriations.--There'';
       (2) in subsection (a), by inserting ``(other than section 
     658H)'' after ``this subchapter''; and
       (3) by adding at the end the following:
       ``(b) Appropriation of Funds for Grants to Improve the 
     Quality of Child Care.--Out of any funds in the Treasury that 
     are not otherwise appropriated, there is authorized to be 
     appropriated and there is appropriated $500,000,000 for each 
     of fiscal years 2006 through 2010, for the purpose of making 
     grants under section 658H.''.
       (b) Use of Block Grant Funds.--Section 658E(c)(3) of the 
     Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
     9858c(c)(3)) is amended--
       (1) in subparagraph (B), by striking ``under this 
     subchapter'' and inserting ``under this subchapter (other 
     than section 658B(b))''; and
       (2) in subparagraph (D), by inserting ``(other than section 
     658H)'' after ``under this subchapter''.
       (c) Establishment of Program.--Section 658G of the Child 
     Care and Development Block Grant Act of 1990 (42 U.S.C. 
     9858e) is amended by inserting ``(other than section 658H)'' 
     after ``this subchapter''.
       (d) Grants To Improve the Quality of Child Care.--The Child 
     Care and Development Block Grant Act of 1990 (42 U.S.C. 9858 
     et seq.) is amended by inserting after section 658G the 
     following:

     ``SEC. 658H. GRANTS TO IMPROVE THE QUALITY OF CHILD CARE.

       ``(a) Authority.--
       ``(1) In general.--The Secretary shall use the amount 
     appropriated under section 658B(b) for a fiscal year to make 
     grants to eligible States, and Indian tribes and tribal 
     organizations, in accordance with this section.
       ``(2) Annual payments.--The Secretary shall make an annual 
     payment for such a grant to each eligible State, and for 
     Indian tribes and tribal organizations, out of the 
     corresponding payment or allotment made under subsections 
     (a), (b), and (e) of section 658O from the amount 
     appropriated under section 658B(b).
       ``(b) Eligible States.--
       ``(1) In general.--In this section, the term `eligible 
     State' means a State that--
       ``(A) has conducted a statistically valid survey of the 
     market rates for child care

[[Page S2039]]

     services in the State within the 2 years preceding the date 
     of the submission of an application under paragraph (2); and
       ``(B) submits an application in accordance with paragraph 
     (2).
       ``(2) Application.--
       ``(A) In general.--To be eligible to receive a grant under 
     this section, a State shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information, in addition to the information required 
     under subparagraph (B), as the Secretary may require.
       ``(B) Information required.--Each application submitted for 
     a grant under this section shall--
       ``(i) detail the methodology and results of the State 
     market rates survey conducted pursuant to paragraph (1)(A);
       ``(ii) describe the State's plan to increase payment rates 
     from the initial baseline determined under clause (i);
       ``(iii) describe how the State will increase payment rates 
     in accordance with the market survey results, for all types 
     of child care providers who provide services for which 
     assistance is made available under this subchapter;
       ``(iv) describe how payment rates will be set to reflect 
     the variations in the cost of providing care for children of 
     different ages and different types of care;
       ``(v) describe how the State will prioritize increasing 
     payment rates for--

       ``(I) care of higher-than-average quality, such as care by 
     accredited providers or care that includes the provision of 
     comprehensive services;
       ``(II) care for children with disabilities and children 
     served by child protective services; or
       ``(III) care for children in communities served by local 
     educational agencies that have been identified for 
     improvement under section 1116(c)(3) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 6316(c)(3));

       ``(vi) describe the State's plan to assure that the State 
     will make the payments on a timely basis and follow the usual 
     and customary market practices with regard to payment for 
     child absentee days; and
       ``(vii) describe the State's plans for making the results 
     of the survey widely available through public means.
       ``(3) Continuing eligibility requirement.--
       ``(A) Second and subsequent payments.--A State shall be 
     eligible to receive a second or subsequent annual payment 
     under this section only if the Secretary determines that the 
     State has made progress, through the activities assisted 
     under this subchapter, in maintaining increased payment 
     rates.
       ``(B) Third and subsequent payments.--A State shall be 
     eligible to receive a third or subsequent annual payment 
     under this section only if the State has conducted, at least 
     once every 2 years, an update of the survey described in 
     paragraph (1)(A).
       ``(4) Requirement of matching funds.--
       ``(A) In general.--To be eligible to receive a grant under 
     this section, the State shall agree to make available State 
     contributions from State sources toward the costs of the 
     activities to be carried out by the State pursuant to 
     subsection (c) in an amount that is not less than 20 percent 
     of such costs.
       ``(B) Determination of state contributions.--Such State 
     contributions shall be in cash. Amounts provided by the 
     Federal Government may not be included in determining the 
     amount of such State contributions.
       ``(c) Use of Funds.--
       ``(1) Priority use.--An eligible State that receives a 
     grant under this section shall use the funds received to 
     significantly increase the payment rate for the provision of 
     child care assistance in accordance with this subchapter up 
     to the 100th percentile of the market rate determined under 
     the market rate survey described in subsection (b)(1)(A).
       ``(2) Additional uses.--An eligible State that demonstrates 
     to the Secretary that the State has achieved a payment rate 
     of the 100th percentile of the market rate determined under 
     the market rate survey described in subsection (b)(1)(A) may 
     use funds received under a grant made under this section for 
     any other activity that the State demonstrates to the 
     Secretary will enhance the quality of child care services 
     provided in the State.
       ``(3) Supplement not supplant.--Amounts paid to a State 
     under this section shall be used to supplement and not 
     supplant other Federal, State, or local funds provided to the 
     State under this subchapter or any other provision of law.
       ``(d) Evaluations and Reports.--
       ``(1) State evaluations.--Each eligible State shall submit 
     to the Secretary, at such time and in such form and manner as 
     the Secretary may require, information regarding the State's 
     efforts to increase payment rates and the impact increased 
     payment rates are having on the quality of child care in the 
     State and the access of parents to high-quality child care in 
     the State.
       ``(2) Reports to congress.--The Secretary shall submit 
     biennial reports to Congress on the information described in 
     paragraph (1). Such reports shall include data from the 
     applications submitted under subsection (b)(2) as a baseline 
     for determining the progress of each eligible State in 
     maintaining increased payment rates.
       ``(e) Indian Tribes and Tribal Organizations.--The 
     Secretary shall determine the manner in which and the extent 
     to which the provisions of this section apply to Indian 
     tribes and tribal organizations.
       ``(f) Payment Rate.--In this section, the term `payment 
     rate' means the rate of reimbursement to providers for 
     subsidized child care.''.
       (e) Payments.--Section 658J(a) of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858h(a)) is 
     amended by inserting ``from funds appropriated under section 
     658B(a)'' after ``section 658O''.
       (f) Allotment.--Section 658O of the Child Care and 
     Development Block Grant Act of 1990 (42 U.S.C. 9858m) is 
     amended--
       (1) in subsection (b)(1), in the matter preceding 
     subparagraph (A)--
       (A) by striking ``section 658B'' and inserting ``section 
     658B(a)''; and
       (B) by inserting ``and from the amounts appropriated under 
     section 658B(b) for each fiscal year remaining after 
     reservations under subsection (a),'' before ``the Secretary 
     shall allot''; and
       (2) in subsection (e)--
       (A) in paragraph (1), by striking ``the allotment under 
     subsection (b)'' and inserting ``an allotment made under 
     subsection (b)''; and
       (B) in paragraph (3), by inserting ``corresponding'' before 
     ``allotment''.

  Mr. KENNEDY. Mr. President, I'm pleased to join my colleagues in 
introducing the Caring for Children Act of 2005. We were able to work 
together on both sides of the aisle to prepare this bill to reauthorize 
the Child Care and Development Block Grant program. The Caring for 
Children Act reflects our common goals to expand access and improve the 
quality of child care for children and families throughout the Nation.
  Child care is a key issue in both welfare reform and education 
reform. The success of our welfare system rests on our ability to 
provide dependable and consistent child care support for low-income 
families, so that they can work and provide for their families. 
Improving the quality of child care and the environment in which our 
children develop is an essential responsibility of our society as a 
whole, and this legislation can be an important part of our effort in 
Congress to meet that responsibility.
  Today, 65 percent of parents with young children and 79 percent of 
parents with school age children are in America's workforce. During the 
working day, 14 million children are cared for by someone other than a 
parent.
  For low-income families and single mothers, child care assistance is 
a lifeline. Low-income mothers who receive child care assistance are 40 
percent more likely to remain employed after 2 years, compared to those 
who do not receive such support. Yet child care is still unaffordable 
for far too many families--full-day care can easily cost thousands of 
dollars a year and become an impossible expense for millions of 
families.
  The Caring for Children Act will expand access to child care and do 
more to deliver the support that working parents need in obtaining 
effective child care. The bill supports activities to help parents fmd 
quality care through State Resource and Referral Centers, so that 
greater information and outreach to parents will be available.
  Child care is a vital support for working parents, and it is also an 
essential link in preparing young children for school. Research shows 
that the early environments in which children learn and develop have a 
profound impact on their later development and on their success in 
school. Unfortunately, much remains to be done to improve the quality 
of child care. Nearly half of all kindergarten teachers report that the 
majority of children in each entering class has specific problems, 
including difficulty in following directions, lack of even the most 
basic academic skills, troubled situations at home, or difficulty in 
relating to other children.
  The Caring for Children Act seeks to improve the quality of child 
care available to low-income children and their families through the 
Child Care and Development Block Grant. The bill will raise the amount 
of funds that States must dedicate to quality activities from 4 to 6 
percent.
  Most important, the Act will promote better child care by focusing on 
activities that make children ready to learn, and encouraging States to 
improve child safety and well-being. Funds will be used to provide 
greater training and support for child care workers, establish 
voluntary guidelines for school preparedness, and enhance the early 
learning of young children.
  Investments in the child care workforce are also essential to improve 
the quality of care. Today, only one in

[[Page S2040]]

seven child care centers provides a level of quality adequate for child 
development. Thirty states have no pre-service training requirements 
for child care workers. Our bill supports professional development and 
education opportunities for child care providers to upgrade their 
skills and to use proven and effective early learning materials and 
teaching strategies in their work. It encourages states to increase the 
recruitment and retention of qualified child care staff and reduce the 
high turnover rates in child care centers.
  We must also do more to ensure that states provide timely and 
adequate payments for high quality care. The Caring for Children Act 
will improve reimbursement rates for care in the states, and more 
effectively use the market survey required under current law to 
establish payment rates. I commend Senator Reed for his leadership on 
those provisions.
  Finally, the Caring for Children Act creates a new Federal commitment 
to serve children in need, including families with infants and 
toddlers, children with disabilities, and families that require special 
care during non-traditional work hours. Thanks to Senator Harkin's 
leadership, the needs of infants and toddlers will continue to be 
addressed in this bill.
  The Caring for Children Act builds on effective practices already 
underway in many states, but we still have a long way to go to see that 
all children have access to good child care. More resources are clearly 
required, and the need is urgent.
  In nearly half the states, eligible children are being placed on 
waiting lists or being turned away altogether. In Massachusetts, over 
16,000 low-income children are on waiting lists.
  Instead of responding to this need, the President's budget for Fiscal 
Year 2006 freezes funding for the Child Care and Development Block 
Grant. Under the Administration's own calculations, 300,000 fewer low-
income children will have access to child care assistance by 2010. 
Surely, we can do better.
  It makes no sense to cut back on child care for low-income children. 
We need to serve as many needy children as possible. I look forward 
very much to working with our colleagues on the Finance Committee to 
make that goal a reality as the reauthorization of the Temporary 
Assistance for Needy Families Block Grant moves forward this year.
  I commend Senators Enzi, Alexander, and Dodd for their impressive 
work on this bill. I urge all of my colleagues in the Senate to support 
this important legislation and work with us to provide the support for 
quality child care that low-income families throughout America need and 
deserve.
                                 ______
                                 
      By Mr. LAUTENBERG (for himself, Mr. Corzine, Mr. Schumer, and 
        Mrs. Clinton):
  S. 527. A bill to protect the Nation's law enforcement officers by 
banning the Five-seveN Pistol and 5.7 x 28mm SS190 and SS192 
cartridges, testing handguns and ammunition for capability to penetrate 
body armor, and prohibiting the manufacture, importation, sale, or 
purchase of such handguns or ammunition by civilians; to the Committee 
on the Judiciary.
  Mr. LAUTENBERG. Mr. President, the tragic attacks of September 11, 
2001 reminded us that police are heroes who risk their lives to protect 
us.
  That's why it's so outrageous that a gun manufacturer would design 
and market a ``cop killer'' weapon.
  Today on the streets of our cities there is a handgun, called the 
Five-SeveN, that was specifically designed to pierce bulletproof vests 
like the ones worn by police.
  The web site for this gun actually brags that it can pierce 
protective armor--that it is a potential cop killer.
  One of these weapons was recently confiscated by police officer in 
Camden, NJ, from a suspect charged with trafficking in large amounts of 
narcotics.
  If there had been a gunfight, the police would have been outgunned.
  Who knows how many cop-killer guns are on the streets of my State--or 
yours?
  Police across the nation are alarmed by this weapon. The police chief 
of Jersey City, Robert Troy, recently pleaded with Congress to ban this 
gun.
  That's why I have introduced the Protect Law Enforcement Armor (PLEA) 
Act to take ``cop-killer guns'' off the streets. And, I am pleased 
Senators Corzine, Schumer and Clinton are co-sponsors of this 
legislation.
  There might be a place for this gun on a battlefield . . . but not 
near a playground.
  Not on our streets.
  The cop-killer gun isn't good for hunting. The last time I checked, 
deer didn't wear bulletproof vests.
  It isn't for target shooting.
  It isn't even a practical weapon for protection against home 
intruders.
  The cop-killer gun was designed for one thing--piercing the 
protective armor worn by police officers.
  This is a weapon a terrorist or criminal would love: light and easily 
concealed, yet so powerful that it can penetrate a bullet-proof vest 
from a distance of more than two football fields.
  Armor-piercing bullets are already illegal, but the cop-killer gun 
has slipped through a loophole in the law.
  Simply put, this gun skirts the law by delivering ammunition with 
unusual velocity, turning otherwise legal bullets into ``cop killers.''
  We can't sit by. We must protect our police.
  We must ban the cop-killer gun and close the loophole on cop-killer 
bullets.
  Our police officers risk their lives to protect us . . . but we 
should reduce that risk as much as possible.
  Let's get cop-killer guns off our streets.
  Let's pass the PLEA Act.
  The PLEA Act is simple. It would ban the Five-seven assault pistol, 
ban the special armor piecing FN 5.7 x 28mm S 192 ammunition, expand 
the federal definition of armor piercing ammunition, and require the 
Attorney General to test any ammunition that is capable of penetrating 
body armor.
  The PLEA Act does not apply to the military and law enforcement. In 
fact, it specifically exempts sale of armor piercing ammunition to the 
military and law enforcement.
  I encourage my colleagues to support it.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 527

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Protect Law Enforcement 
     Armor Act'' or the ``PLEA Act''.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds the following:
       (1) Law enforcement is facing a new threat from handguns 
     and accompanying ammunition, which are designed to penetrate 
     police body armor, being marketed and sold to civilians.
       (2) A Five-seveN Pistol and accompanying ammunition, 
     manufactured by FN Herstal of Belgium as the ``5.7 x 28 mm 
     System,'' has recently been recovered by law enforcement on 
     the streets. The Five-seveN Pistol and 5.7 x 28mm SS192 
     cartridges are legally available for purchase by civilians 
     under current law.
       (3) The Five-seveN Pistol and 5.7 x 28mm SS192 cartridges 
     are capable of penetrating level IIA armor. The manufacturer 
     advertises that ammunition fired from the Five-seveN will 
     perforate 48 layers of Kevlar up to 200 meters and that the 
     ammunition travels at 2100 feet per second.
       (4) The Five-seveN Pistol, and similar handguns designed to 
     use ammunition capable of penetrating body armor, pose a 
     devastating threat to law enforcement.
       (b) Purpose.--The purpose of this Act is to protect the 
     Nation's law enforcement officers by--
       (1) testing handguns and ammunition for capability to 
     penetrate body armor; and
       (2) prohibiting the manufacture, importation, sale, or 
     purchase by civilians of the Five-seveN Pistol, ammunition 
     for such pistol, or any other handgun that uses ammunition 
     found to be capable of penetrating body armor.

     SEC. 3. ARMOR PIERCING AMMUNITION.

       (a) Expansion of Definition of Armor Piercing Ammunition.--
     Section 921(a)(17)(B) of title 18, United States Code, is 
     amended--
       (1) in clause (i), by striking ``or'' at the end;
       (2) in clause (ii), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(iii) a projectile that--
       ``(I) may be used in a handgun; and
       ``(II) the Attorney General determines, pursuant to section 
     926(d), to be capable of penetrating body armor.''.
       (b) Determination of Capability of Projectiles to Penetrate 
     Body Armor.--Section 926 of title 18, United States Code, is 
     amended by adding at the end the following:

[[Page S2041]]

       ``(d)(1) Not later than 1 year after the date of enactment 
     of this subsection, the Attorney General shall promulgate 
     standards for the uniform testing of projectiles against Body 
     Armor Exemplar.
       ``(2) The standards promulgated pursuant to paragraph (1) 
     shall take into account, among other factors, variations in 
     performance that are related to the type of handgun used, the 
     length of the barrel of the handgun, the amount and kind of 
     powder used to propel the projectile, and the design of the 
     projectile.
       ``(3) As used in paragraph (1), the term `Body Armor 
     Exemplar' means body armor that the Attorney General 
     determines meets minimum standards for the protection of law 
     enforcement officers.''

     SEC. 4. ARMOR PIERCING HANDGUNS AND AMMUNITION.

       (a) In General.--Section 922 of title 18, United States 
     Code, is amended by adding after subsection (y):
       ``(z) Five-seveN Pistol.--
       ``(1) In general.--It shall be unlawful for any person to 
     manufacture, import, market, sell, ship, deliver, possess, 
     transfer, or receive--
       ``(A) the Fabrique Nationale Herstal Five-SeveN Pistol;
       ``(B) 5.7 x 28mm SS190 and SS192 cartridges; or
       ``(C) any other handgun that uses armor piercing 
     ammunition.
       ``(2) Exceptions.--This subsection shall not apply to--
       ``(A) any firearm or armor piercing ammunition manufactured 
     for, and sold exclusively to, military, law enforcement, or 
     intelligence agencies of the United States; and
       ``(B) the manufacture, possession, transfer, receipt, 
     shipment, or delivery of a firearm or armor piercing 
     ammunition by a licensed manufacturer, or any person acting 
     pursuant to a contract with a licensed manufacturer, for the 
     purpose of examining and testing such firearm or ammunition 
     to determine whether paragraph (1) applies to such 
     firearm.''.
       (b) Penalties.--Section 924(a)(1)(B) of title 18, United 
     States Code, is amended by striking ``or (q)'' and inserting 
     ``(q), or (z)''.
                                 ______
                                 
      By Mr. HARKIN (for himself and Mr. Smith):
  S. 528. A bill to authorize the Secretary of Health and Human 
Services to provide grants to States to conduct demonstration projects 
that are designed to enable medicaid-eligible individuals to receive 
support for appropriate and necessary long-term services in the 
settings of their choice; to the Committee on Finance.
  Mr. HARKIN. Mr. President, today I, along with Senator Smith, 
introduce the Money Follows the Person Act of 2005. This legislation is 
needed to truly bring people with disabilities into the mainstream of 
society and provide equal opportunity for employment and community 
activities.
  In order to work or live in their own homes, Americans with 
disabilities need access to community-based services and supports. 
Unfortunately, under current Federal Medicaid policy, the deck is 
stacked in favor of living in an institution. The purpose of this bill 
is to level the playing field and give eligible individuals equal 
access to community-based services and supports.
  Under our legislation, the Medicaid money paid by states and the 
Federal government would follow the person with a disability from an 
institution into the community. This legislation provides 100 percent 
Federal reimbursement for the community services that an individual 
needs during the first year that they move out of an institution or 
nursing home. By fully reimbursing the states, it gives them some 
additional resources to allow people with disabilities to choose to 
live in the community.
  President Bush first proposed the Money Follows the Person 
Rebalancing Initiative in his FY '04 budget and indicated that the 
demonstration project would provide full Federal reimbursement for 
community services for the first year that an individual moves out of 
an institution or nursing home. Senator Smith and I have worked with 
the disability community and others in drafting this legislation, and 
we look forward to working with the Administration and our colleagues 
to enact the Money Follows the Person concept into law.
  We have a Medicaid system in this country that is spending 
approximately two-thirds of its dollars on institutional care and 
approximately one-third on community services. This bill is an 
important step toward switching those numbers around.
  It is shameful that our federal dollars are being spent to segregate 
people, not integrate them. It has been 15 years since we passed the 
Americans with Disabilities Act, which said ``no'' to segregation. But 
our Medicaid program says ``yes'' and we need to change it. This is the 
next civil rights battle. If we really meant what we said in the ADA in 
1990, we should enact this legislation.
  The civil right of a person with a disability to be integrated into 
his or her community should not depend on his or her address. In 
Olmstead v. LC, the Supreme Court recognized that needless 
institutionalization is a form of discrimination under the Americans 
with Disabilities Act. We in Congress have a responsibility to help 
States meet their obligations under Olmstead. An individual should not 
be asked to move to another state in order to avoid needless 
segregation. They also should not be moved away from family and friends 
because their only choice is an institution.
  Federal Medicaid policy should reflect the consensus reached in the 
ADA that Americans with disabilities should have equal opportunity to 
contribute to our communities and participate in our society as full 
citizens. That means no one has to sacrifice their full participation 
in society because they need help getting out of the house in the 
morning or assistance with personal care or some other basic service.
  This bill will open the door to full participation by people with 
disabilities in our neighborhoods, our communities, our workplaces, and 
our American Dream, and I urge all my colleagues to support us on this 
issue. I want to thank Senator Smith for his commitment to improving 
access to home and community based services for people with 
disabilities.
  I ask unanimous consent that the text of this bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 528

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Money Follows the Person Act 
     of 2005''.

     SEC. 2. MONEY FOLLOWS THE PERSON REBALANCING DEMONSTRATION.

       (a) Program Purpose and Authority.--The Secretary of Health 
     and Human Services (in this section referred to as the 
     ``Secretary'') is authorized to award, on a competitive 
     basis, grants to States in accordance with this section for 
     demonstration projects (each in this section referred to as a 
     ``MFP demonstration project'') designed to achieve the 
     following objectives with respect to institutional and home 
     and community-based long-term care services under State 
     medicaid programs:
       (1) Rebalancing.--Increase the use of home and community-
     based, rather than institutional, long-term care services.
       (2) Money follows the person.--Eliminate barriers or 
     mechanisms, whether in the State law, the State medicaid 
     plan, the State budget, or otherwise, that prevent or 
     restrict the flexible use of medicaid funds to enable 
     medicaid-eligible individuals to receive support for 
     appropriate and necessary long-term services in the settings 
     of their choice.
       (3) Continuity of service.--Increase the ability of the 
     State medicaid program to assure continued provision of home 
     and community-based long-term care services to eligible 
     individuals who choose to transition from an institutional to 
     a community setting.
       (4) Quality assurance and quality improvement.--Ensure that 
     procedures are in place (at least comparable to those 
     required under the qualified HCB program) to provide quality 
     assurance for eligible individuals receiving medicaid home 
     and community-based long-term care services and to provide 
     for continuous quality improvement in such services.
       (b) Definitions.--For purposes of this section:
       (1) Home and community-based long-term care services.--The 
     term ``home and community-based long-term care services'' 
     means, with respect to a State medicaid program, home and 
     community-based services (including home health and personal 
     care services) that are provided under the State's qualified 
     HCB program or that could be provided under such a program 
     but are otherwise provided under the medicaid program.
       (2) Eligible individual.--The term ``eligible individual'' 
     means, with respect to an MFP demonstration project of a 
     State, an individual in the State--
       (A) who, immediately before beginning participation in the 
     MFP demonstration project--
       (i) resides (and has resided, for a period of not less than 
     six months or for such longer minimum period, not to exceed 2 
     years, as may be specified by the State) in an inpatient 
     facility;
       (ii) is receiving medicaid benefits for inpatient services 
     furnished by such inpatient facility; and

[[Page S2042]]

       (iii) with respect to whom a determination has been made 
     that, but for the provision of home and community-based long-
     term care services, the individual would continue to require 
     the level of care provided in an inpatient facility; and
       (B) who resides in a qualified residence beginning on the 
     initial date of participation in the demonstration project.
       (3) Inpatient facility.--The term ``inpatient facility'' 
     means a hospital, nursing facility, or intermediate care 
     facility for the mentally retarded. Such term includes an 
     institution for mental diseases, but only, with respect to a 
     State, to the extent medical assistance is available under 
     the State medicaid plan for services provided by such 
     institution.
       (4) Individual's authorized representative.--The term 
     ``individual's authorized representative'' means, with 
     respect to an eligible individual, the individual's parent, 
     family member, guardian, advocate, or other authorized 
     representative of the individual.
       (5) Medicaid.--The term ``medicaid'' means, with respect to 
     a State, the State program under title XIX of the Social 
     Security Act (including any waiver or demonstration under 
     such title or under section 1115 of such Act relating to such 
     title).
       (6) Qualified hcb program.--The term ``qualified HCB 
     program'' means a program providing home and community-based 
     long-term care services operating under medicaid, whether or 
     not operating under waiver authority.
       (7) Qualified residence.--The term ``qualified residence'' 
     means, with respect to an eligible individual--
       (A) a home owned or leased by the individual or the 
     individual's family member;
       (B) an apartment with an individual lease, with lockable 
     access and egress, and which includes living, sleeping, 
     bathing, and cooking areas over which the individual or the 
     individual's family has domain and control; and
       (C) a residence, in a community-based residential setting, 
     in which no more than 4 unrelated individuals reside.
       (8) Qualified expenditures.--The term ``qualified 
     expenditures'' means expenditures by the State under its MFP 
     demonstration project for home and community-based long-term 
     care services for an eligible individual participating in the 
     MFP demonstration project, but only with respect to services 
     furnished during the 12-month period beginning on the date 
     the individual is discharged from an inpatient facility 
     referred to in paragraph (2)(A)(i).
       (9) Self-directed services.--The term ``self-directed'' 
     means, with respect to, home and community-based long-term 
     care services for an eligible individual, such services for 
     the individual which are planned and purchased under the 
     direction and control of such individual or the individual's 
     authorized representative, including the amount, duration, 
     scope, provider, and location of such services, under the 
     State medicaid program consistent with the following 
     requirements:
       (A) Assessment.--There is an assessment of the needs, 
     capabilities, and preferences of the individual with respect 
     to such services.
       (B) Service plan.--Based on such assessment, there is 
     developed jointly with such individual or the individual's 
     authorized representative a plan for such services for such 
     individual that is approved by the State and that--
       (i) specifies those services which the individual or the 
     individual's authorized representative would be responsible 
     for directing;
       (ii) identifies the methods by which the individual or the 
     individual's authorized representative will select, manage, 
     and dismiss providers of such services;
       (iii) specifies the role of family members and others whose 
     participation is sought by the individual or the individual's 
     authorized representative with respect to such services;
       (iv) is developed through a person-centered process that--

       (I) is directed by the individual or the individual's 
     authorized representative;
       (II) builds upon the individual's capacity to engage in 
     activities that promote community life and that respects the 
     individual's preferences, choices, and abilities; and
       (III) involves families, friends, and professionals as 
     desired or required by the individual or the individual's 
     authorized representative;

       (v) includes appropriate risk management techniques that 
     recognize the roles and sharing of responsibilities in 
     obtaining services in a self-directed manner and assure the 
     appropriateness of such plan based upon the resources and 
     capabilities of the individual or the individual's authorized 
     representative; and
       (vi) may include an individualized budget which identifies 
     the dollar value of the services and supports under the 
     control and direction of the individual or the individual's 
     authorized representative.
       (C) Budget Process.--With respect to individualized budgets 
     described in subparagraph (B)(vi), the State application 
     under subsection (c)--
       (i) describes the method for calculating the dollar values 
     in such budgets based on reliable costs and service 
     utilization;
       (ii) defines a process for making adjustments in such 
     dollar values to reflect changes in individual assessments 
     and service plans; and
       (iii) provides a procedure to evaluate expenditures under 
     such budgets.
       (10) State.--The term ``State'' has the meaning given such 
     term for purposes of title XIX of the Social Security Act.
       (c) State Application.--A State seeking approval of an MFP 
     demonstration project shall submit to the Secretary, at such 
     time and in such format as the Secretary requires, an 
     application meeting the following requirements and containing 
     such additional information, provisions, and assurances, as 
     the Secretary may require:
       (1) Assurance of a public development process.--The 
     application contains an assurance that the State has engaged, 
     and will continue to engage, in a public process for the 
     design, development, and evaluation of the MFP demonstration 
     project that allows for input from eligible individuals, the 
     families of such individuals, authorized representatives of 
     such individuals, providers, and other interested parties.
       (2) Operation in connection with qualified hcb program to 
     assure continuity of services.--The State will conduct the 
     MFP demonstration project for eligible individuals in 
     conjunction with the operation of a qualified HCB program 
     that is in operation (or approved) in the State for such 
     individuals in a manner that assures continuity of medicaid 
     coverage for such individuals so long as such individuals 
     continue to be eligible for medical assistance.
       (3) Demonstration project period.--The application shall 
     specify the period of the MFP demonstration project, which 
     shall include at least two consecutive fiscal years in the 5-
     fiscal-year period beginning with fiscal year 2006.
       (4) Service area.--The application shall specify the 
     service area or areas of the MFP demonstration project, which 
     may be a Statewide area or one or more geographic areas of 
     the State.
       (5) Targeted groups and numbers of individuals served.--The 
     application shall specify--
       (A) the target groups of eligible individuals to be 
     assisted to transition from an inpatient facility to a 
     qualified residence during each fiscal year of the MFP 
     demonstration project;
       (B) the projected numbers of eligible individuals in each 
     targeted group of eligible individuals to be so assisted 
     during each such year; and
       (C) the estimated total annual qualified expenditures for 
     each fiscal year of the MFP demonstration project.
       (6) Individual choice, continuity of care.--The application 
     shall contain assurances that--
       (A) each eligible individual or the individual's authorized 
     representative will be provided the opportunity to make an 
     informed choice regarding whether to participate in the MFP 
     demonstration project;
       (B) each eligible individual or the individual's authorized 
     representative will choose the qualified residence in which 
     the individual will reside and the setting in which the 
     individual will receive home and community-based long-term 
     care services;
       (C) the State will continue to make available, so long as 
     the State operates its qualified HCB program consistent with 
     applicable requirements, home and community-based long-term 
     care services to each individual who completes participation 
     in the MFP demonstration project for as long as the 
     individual remains eligible for medical assistance for such 
     services under such qualified HCB program (including meeting 
     a requirement relating to requiring a level of care provided 
     in an inpatient facility and continuing to require such 
     services).
       (7) Rebalancing.--The application shall--
       (A) provide such information as the Secretary may require 
     concerning the dollar amounts of State medicaid expenditures 
     for the fiscal year, immediately preceding the first fiscal 
     year of the State's MFP demonstration project, for long-term 
     care services and the percentage of such expenditures that 
     were for institutional long-term care services or were for 
     home and community-based long-term care services;
       (B)(i) specify the methods to be used by the State to 
     increase, for each fiscal year during the MFP demonstration 
     project, the dollar amount of such total expenditures for 
     home and community-based long-term care services and the 
     percentage of such total expenditures for long-term care 
     services that are for home and community-based long-term care 
     services; and
       (ii) describe the extent to which the MFP demonstration 
     project will contribute to accomplishment of objectives 
     described in subsection (a).
       (8) Money follows the person.--The application shall 
     describe the methods to be used by the State to eliminate any 
     legal, budgetary, or other barriers to flexibility in the 
     availability of medicaid funds to pay for long-term care 
     services for eligible individuals participating in the 
     project in the appropriate settings of their choice, 
     including costs to transition from an institutional setting 
     to a qualified residence.
       (9) Maintenance of effort and cost-effectiveness.--The 
     application shall contain or be accompanied by such 
     information and assurances as may be required to satisfy the 
     Secretary that--
       (A) total expenditures under the State medicaid program for 
     home and community-based long-term care services will not be 
     less for any fiscal year during the MFP demonstration project 
     than for the greater of such expenditures for--
       (i) fiscal year 2004; or

[[Page S2043]]

       (ii) any succeeding fiscal year before the first year of 
     the MFP demonstration project; and
       (B) in the case of a qualified HCB program operating under 
     a waiver under subsection (c) or (d) of section 1915 of the 
     Social Security Act (42 U.S.C. 1396n), but for the amount 
     awarded under a grant under this section, the State program 
     would continue to meet the cost-effectiveness requirements of 
     subsection (c)(2)(D) of such section or comparable 
     requirements under subsection (d)(5) of such section, 
     respectively.
       (10) Waiver requests.--The application shall contain or be 
     accompanied by requests for any modification or adjustment of 
     waivers of medicaid requirements described in subsection 
     (d)(3), including adjustments to maximum numbers of 
     individuals included and package of benefits, including one-
     time transitional services, provided.
       (11) Quality assurance and quality improvement.--The 
     application shall include--
       (A) a plan satisfactory to the Secretary for quality 
     assurance and quality improvement for home and community-
     based long-term care services under the State medicaid 
     program, including a plan to assure the health and welfare of 
     individuals participating in the MFP demonstration project; 
     and
       (B) an assurance that the State will cooperate in carrying 
     out activities under subsection (f) to develop and implement 
     continuous quality assurance and quality improvement systems 
     for home and community-based long-term care services.
       (12) Optional program for self-directed services.--If the 
     State elects to provide for any home and community-based 
     long-term care services as self-directed services (as defined 
     in subsection (b)(9)) under the MFP demonstration project, 
     the application shall provide the following:
       (A) Meeting requirements.--A description of how the project 
     will meet the applicable requirements of such subsection for 
     the provision of self-directed services.
       (B) Voluntary election.--A description of how eligible 
     individuals will be provided with the opportunity to make an 
     informed election to receive self-directed services under the 
     project and after the end of the project.
       (C) State support in service plan development.--
     Satisfactory assurances that the State will provide support 
     to eligible individuals who self-direct in developing and 
     implementing their service plans.
       (D) Oversight of receipt of services.--Satisfactory 
     assurances that the State will provide oversight of eligible 
     individual's receipt of such self-directed services, 
     including steps to assure the quality of services provided 
     and that the provision of such services are consistent with 
     the service plan under such subsection.

     Nothing in this section shall be construed as requiring a 
     State to make an election under the project to provide for 
     home and community-based long-term care services as self-
     directed services, or as requiring an individual to elect to 
     receive self-directed services under the project.
       (13) Reports and evaluation.--The application shall provide 
     that--
       (A) the State will furnish to the Secretary such reports 
     concerning the MFP demonstration project, on such timetable, 
     in such uniform format, and containing such information as 
     the Secretary may require, as will allow for reliable 
     comparisons of MFP demonstration projects across States; and
       (B) the State will participate in and cooperate with the 
     evaluation of the MFP demonstration project.
       (d) Secretary's Award of Competitive Grants.--
       (1) In general.--The Secretary shall award grants under 
     this section on a competitive basis to States selected from 
     among those with applications meeting the requirements of 
     subsection (c), in accordance with the provisions of this 
     subsection.
       (2) Selection and modification of state applications.--In 
     selecting State applications for the awarding of such a 
     grant, the Secretary--
       (A) shall take into consideration the manner in which and 
     extent to which the State proposes to achieve the objectives 
     specified in subsection (a);
       (B) shall seek to achieve an appropriate national balance 
     in the numbers of eligible individuals, within different 
     target groups of eligible individuals, who are assisted to 
     transition to qualified residences under MFP demonstration 
     projects, and in the geographic distribution of States 
     operating MFP demonstration projects;
       (C) shall give preference to State applications proposing--
       (i) to provide transition assistance to eligible 
     individuals within multiple target groups; and
       (ii) to provide eligible individuals with the opportunity 
     to receive home and community-based long-term care services 
     as self-directed services, as defined in subsection (b)(9); 
     and
       (D) shall take such objectives into consideration in 
     setting the annual amounts of State grant awards under this 
     section.
       (3) Waiver authority.--The Secretary is authorized to waive 
     the following provisions of title XIX of the Social Security 
     Act, to the extent necessary to enable a State initiative to 
     meet the requirements and accomplish the purposes of this 
     section:
       (A) Statewideness.--Section 1902(a)(1), in order to permit 
     implementation of a State initiative in a selected area or 
     areas of the State.
       (B) Comparability.--Section 1902(a)(10)(B), in order to 
     permit a State initiative to assist a selected category or 
     categories of individuals described in subsection (b)(2)(A).
       (C) Income and resources eligibility.--Section 
     1902(a)(10)(C)(i)(III), in order to permit a State to apply 
     institutional eligibility rules to individuals transitioning 
     to community-based care.
       (D) Provider agreements.--Section 1902(a)(27), in order to 
     permit a State to implement self-directed services in a cost-
     effective manner.
       (4) Conditional approval of outyear grant.--In awarding 
     grants under this section, the Secretary shall condition the 
     grant for the second and any subsequent fiscal years of the 
     grant period on the following:
       (A) Numerical benchmarks.--The State must demonstrate to 
     the satisfaction of the Secretary that it is meeting 
     numerical benchmarks specified in the grant agreement for--
       (i) increasing State medicaid support for home and 
     community-based long-term care services under subsection 
     (c)(5); and
       (ii) numbers of eligible individuals assisted to transition 
     to qualified residences.
       (B) Quality of care.--The State must demonstrate to the 
     satisfaction of the Secretary that it is meeting the 
     requirements under subsection (c)(9) to assure the health and 
     welfare of MFP demonstration project participants.
       (e) Payments to States; Carryover of Unused Grant 
     Amounts.--
       (1) Payments.--For each calendar quarter in a fiscal year 
     during the period a State is awarded a grant under subsection 
     (d), the Secretary shall pay to the State from its grant 
     award for such fiscal year an amount equal to the lesser of--
       (A) 100 percent of the amount of qualified expenditures 
     made during such quarter; or
       (B) the total amount remaining in such grant award for such 
     fiscal year (taking into account the application of paragraph 
     (2)).
       (2) Carryover of unused amounts.--Any portion of a State 
     grant award for a fiscal year under this section remaining at 
     the end of such fiscal year shall remain available to the 
     State for the next four fiscal years, subject to paragraph 
     (3).
       (3) Re-awarding of certain unused amounts.--In the case of 
     a State that the Secretary determines pursuant to subsection 
     (d)(4) has failed to meet the conditions for continuation of 
     a MFP demonstration project under this section in a 
     succeeding year or years, the Secretary shall rescind the 
     grant awards for such succeeding year or years, together with 
     any unspent portion of an award for prior years, and shall 
     add such amounts to the appropriation for the immediately 
     succeeding fiscal year for grants under this section.
       (4) Preventing duplication of payment.--The payment under a 
     MFP demonstration project with respect to qualified 
     expenditures shall be in lieu of any payment with respect to 
     such expenditures that could otherwise be paid under 
     medicaid, including under section 1903(a) of the Social 
     Security Act. Nothing in the previous sentence shall be 
     construed as preventing the payment under medicaid for such 
     expenditures in a grant year after amounts available to pay 
     for such expenditures under the MFP demonstration project 
     have been exhausted.
       (f) Quality Assurance and Improvement; Technical 
     Assistance; Oversight.--
       (1) In general.--The Secretary, either directly or by grant 
     or contract, shall provide for technical assistance to and 
     oversight of States for purposes of upgrading quality 
     assurance and quality improvement systems under medicaid home 
     and community-based waivers, including--
       (A) dissemination of information on promising practices;
       (B) guidance on system design elements addressing the 
     unique needs of participating beneficiaries;
       (C) ongoing consultation on quality, including assistance 
     in developing necessary tools, resources, and monitoring 
     systems; and
       (D) guidance on remedying programmatic and systemic 
     problems.
       (2) Funding.--From the amounts appropriated under 
     subsection (h) for each of fiscal years 2006 through 2010, 
     not more than $2,400,000 shall be available to the Secretary 
     to carry out this subsection.
       (g) Research and Evaluation.--
       (1) In general.--The Secretary, directly or through grant 
     or contract, shall provide for research on and a national 
     evaluation of the program under this section, including 
     assistance to the Secretary in preparing the final report 
     required under paragraph (2). The evaluation shall include an 
     analysis of projected and actual savings related to the 
     transition of individuals to a qualified residences in each 
     State conducting an MFP demonstration project.
       (2) Final report.--The Secretary shall make a final report 
     to the President and the Congress, not later than September 
     30, 2011, reflecting the evaluation described in paragraph 
     (1) and providing findings and conclusions on the conduct and 
     effectiveness of MFP demonstration projects.
       (3) Funding.--From the amounts appropriated under 
     subsection (h) for each of fiscal years 2006 through 2010, 
     not more than $1,100,000 per year shall be available to the 
     Secretary to carry out this subsection.
       (h) Appropriations.--

[[Page S2044]]

       (1) In general.--There are appropriated, from any funds in 
     the Treasury not otherwise appropriated, for grants to carry 
     out this section--
       (A) $250,000,000 for fiscal year 2006;
       (B) $300,000,000 for fiscal year 2007;
       (C) $350,000,000 for fiscal year 2008;
       (D) $400,000,000 for fiscal year 2009; and
       (E) $450,000,000 for fiscal year 2010.
       (2) Availability.--Amounts made available under paragraph 
     (1) for a fiscal year shall remain available for the awarding 
     of grants to States by not later than September 30, 2010.
       (i) Rule of Construction.--Nothing in this Act shall be 
     construed as requiring a State to agree to a capped allotment 
     for expenditures for long-term care services under medicaid.
                                 ______
                                 
      By Mr. GRASSLEY (for himself, Mr. Biden, Mr. McCain, and Mr. 
        Stevens):
  S. 529. A bill to designate a United States Anti-Doping Agency; to 
the Committee on Commerce, Science, and Transportation.
  Mr. GRASSLEY. Mr. President, America is a nation of sports fans and 
sports players. In fact, it is hard to imagine something more 
influential in today's society than athletics. As children, we grow up 
emulating our favorite players in the backyard. Year in and year out we 
watch and hope that this is the year our favorite team makes it to the 
Super Bowl, the World Series, or the Big Dance. And every 4 years we 
watch in pride and tally the medals as American athletes compete in the 
Olympic games.
  Every day millions of young people from across the country share the 
same dream of one day playing in the big leagues. But the reality is 
that most will never get the chance. In an average year, there are 
approximately 2 million high school boys playing football, baseball, 
and basketball. Another 68,000 men are playing the sports in college 
and 2,500 are participating at the major/professional level. In short, 
only 1 in 736, or 0.14 percent will ever play professional sports.
  With that kind of competition, compounded by the lure of fame, 
endorsements and multi-million dollar contracts, an increasing number 
of young athletes are giving in to the seduction of performance 
enhancing drugs hoping to gain an edge on their peers. And what can you 
expect when some of the biggest superstars in sports have been found 
using steroids as a way to improve their performance. But, unlike 
better athletic gear, better nutrition, and better training, injecting 
and ingesting performance enhancing drugs as a shortcut to the big 
leagues jeopardizes the health and safety of young athletes and 
cheapens the legitimacy of competition.
  In an effort to combat the use of performance enhancing drugs at the 
youth and amateur sports level, I am pleased to be joined by my 
colleagues Senator Biden, Senator McCain and Senator Stevens in 
introducing legislation to authorize continued Federal funding for the 
United States Anti-Doping Agency, USADA. As the anti-doping agency for 
the United States Olympic movement since 2000, USADA is responsible for 
ensuring that U.S. athletes participating in Olympic competition do not 
use performance enhancing drugs. Through its efforts, USADA is 
establishing a drug free standard for amateur athletic competition. 
This is achieved through testing, research, education, and 
adjudication.
  USADA conducts nearly 6,500 random drug tests on athletes annually 
and has made anti-doping presentations to over 3,000 athletes and 
coaches last year alone. Over the last 2 years, USADA has worked to 
prevent U.S. Olympic athletes who have used banned substances from 
participating in the Olympic Games. But for the efforts of USADA, it is 
possible that more than a dozen elite U.S. athletes would have 
participated in the Athens Games last Summer and potentially 
embarrassed the U.S. once their drug use was exposed. USADA also works 
to fund research, including more than $3 million in grants for anti-
doping research over the past 2 years, which is more than any other 
anti-doping agency in the world. The research and testing standards 
serve as models for other amateur athletic associations who wish to 
protect the health of their athletes and the fair competition of sport.
  To date, the Federal Government has provided approximately 60 percent 
of USADA's operational budget, with the remainder of the agency's 
budget provided by the U.S. Olympic Committee and private funding 
sources. With continued support and proper funding, USADA could expand 
and improve upon the programs for anti-doping that already exist and 
continue to enhance the credibility of U.S. athletes in the eyes of the 
international sports community.
  While the issue of anabolic steroids has received a great deal of 
national and international attention in the context of professional 
sports, the importance of stopping steroid abuse extends far beyond the 
track, baseball diamond, or football field. Instead our focus should be 
on the health and future of our children. I encourage my colleagues to 
join in support of this legislation to set the standard for free and 
fair competition.
  Mr. President. I ask unanimous consent that the text of this bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 529

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. DESIGNATION OF UNITED STATES ANTI-DOPING AGENCY.

       (a) Definitions.--In this Act:
       (1) United states olympic committee.--The term ``United 
     States Olympic Committee'' means the organization established 
     by the ``Ted Stevens Olympic and Amateur Sports Act'' (36 
     U.S.C. 220501 et seq.).
       (2) Amateur athletic competition.--The term ``amateur 
     athletic competition'' means a contest, game, meet, match, 
     tournament, regatta, or other event in which amateur athletes 
     compete (36 U.S.C. 220501(b)(2)).
       (3) Amateur athlete.--The term ``amateur athlete'' means an 
     athlete who meets the eligibility standards established by 
     the national governing body or paralympic sports organization 
     for the sport in which the athlete competes (36 U.S.C. 
     22501(b)(1)).
       (b) In General.--The United States Anti-Doping Agency 
     shall--
       (1) serve as the independent anti-doping organization for 
     the amateur athletic competitions recognized by the United 
     States Olympic Committee;
       (2) ensure that athletes participating in amateur athletic 
     activities recognized by the United States Olympic Committee 
     are prevented from using performance-enhancing drugs;
       (3) implement anti-doping education, research, testing, and 
     adjudication programs to prevent United States Amateur 
     Athletes participating in any activity recognized by the 
     United States Olympic Committee from using performance-
     enhancing drugs; and
       (4) serve as the United States representative responsible 
     for coordination with other anti-doping organizations 
     coordinating amateur athletic competitions recognized by the 
     United States Olympic Committee to ensure the integrity of 
     athletic competition, the health of the athletes and the 
     prevention of use of performance-enhancing drugs by United 
     States amateur athletes.

     SEC. 2. RECORDS, AUDIT, AND REPORT.

       (a) Records.--The United States Anti-Doping Agency shall 
     keep correct and complete records of account.
       (b) Report.--The United States Anti-Doping Agency shall 
     submit an annual report to Congress which shall include--
       (1) an audit conducted and submitted in accordance with 
     section 10101 of title 36, United States Code; and
       (2) a description of the activities of the agency.

     SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the United 
     States Anti-Doping Agency--
       (1) for fiscal year 2006, $9,500,000;
       (2) for fiscal year 2007, $9,900,000;
       (3) for fiscal year 2008, $10,500,000;
       (4) for fiscal year 2009, $10,800,000; and
       (5) for fiscal year 2010, $11,100,000.

                          ____________________